Shrek Cyclery Sells a Bicycle to W

question 92

Multiple Choice

Shrek Cyclery sells a bicycle to W.O'Connor,a customer who uses Empress Charge (a national credit card,but not issued by a bank) .In recording this sale,Shrek Cyclery should record:

• A)An account receivable from W.O'Connor.
• B)A cash receipt.
• C)An account receivable from Empress Charge.
• D)A small increase in the allowance for doubtful accounts.

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Definitions:

Quantity of Land

The total area or amount of productive land available for agricultural or industrial use.

Rent

A fee charged for the use of property or land, typically paid monthly by tenants to landlords.

Economic Rent

Income earned from the possession of a unique asset or advantage not due to individual effort or investment, such as land ownership or patents.

Unearned Surplus

Income derived from investments rather than from work or productive activity.