Goran Company Accepted a Credit Card Account Receivable in Exchange

question 81

Multiple Choice

Goran Company accepted a credit card account receivable in exchange for $5,500 of services provided to a customer. The credit card company charges a 5% service charge. The collection of cash from the credit card company when it settles the account receivable balance will act to:

• A)increase assets by $275.
• B)decrease assets and equity by $275.
• C)increase assets by $5,500.
• D)none of these.

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Definitions:

Youngest

This term refers to the most recently formed or last in a sequence, often used in contexts related to geologic formations or the age of geological layers.

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Orbited

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Solar Wind

Solar Wind is a stream of charged particles, including electrons and protons, ejected from the upper atmosphere of the sun, affecting the entire solar system.