Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \quad\text { Decrease } = \mathrm { D } \quad\text { No Effect } = \mathrm { N }$$

question 83

Short Answer

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. $$\text { Increase } = \mathrm { I } \quad\text { Decrease } = \mathrm { D } \quad\text { No Effect } = \mathrm { N }$$
On November 1, 2014, Hardin Company accepted a credit card as payment for $2,000 of services rendered to one of its customers. Assume the credit card fee of 3% is recorded on the date of the sale. Show the effect of the sale and credit card fee on Ulmer's financial statements.

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Definitions:

American Bar Association (ABA)

The largest voluntary association of lawyers and law students in the United States, which sets academic and ethical standards for the legal profession.

Contingency-Fee Basis

A payment structure where a lawyer receives a percentage of the client's settlement or judgment as a fee, only if the case is won.

Double Billing

The unethical practice of charging more than once for the same service or work, often found in legal and medical billing.

Billable Time

The time that professionals, like lawyers or consultants, record for tasks they perform on behalf of their clients, which determines how much the client will be charged.