Glebe Company Accepted a Credit Card Account Receivable in Exchange

question 7

Multiple Choice

Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer.The credit card company charges a 5% fee for handling the transaction.What effect will the collection of cash from the credit card company have on the elements of the financial statements?

• A)Increase assets by $1,045
• B)Decrease assets and stockholders' equity by $55
• C)Increase assets by $1,100
• D)None of these answer choices are correct