If Abby,Inc

question 146

Multiple Choice

If Abby,Inc.sells items to a customer who uses a credit card for $1,900,and there is a credit card fee of 2.5%,Abby will record a(n) : (Round your final answer to the nearest dollar. )

• A)credit to Sales Revenue for $1,852.
• B)debit to Accounts Receivable for $1,852.
• C)debit to Sales Expense for $48.
• D)debit to Credit Card Discount Expense for $48.

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Definitions:

Labor Efficiency Variance

A metric that assesses the difference in actual versus budgeted labor hours used, valued at the standard wage rate, to gauge workforce productivity.

Work in Process Account

An account that tracks the costs associated with partially completed goods in the manufacturing process.

Raw Materials Account

An account used to track the costs of raw materials that are purchased but not yet used in production.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased or distributed to customers.