During the fiscal year ended December 31, 2016, Bahringer Incorporated sold gift certificates to MacGyver Corp. for a total of $64,000. How would this transaction be reflected in the financial statements of Bahringer Incorporated for the fiscal year ended December 31, 2016? Assume none of the gift certificates had been redeemed by the end of the fiscal year. A) Increase to liabilities; Increase to sales revenue. B) Increase to assets; Increase to sales revenue. C) None of the answers are correct. D) Increase to assets; Increase to liabilities. E) No change to assets; Increase to liabilities.

Answer rating: 100% (QA)

The correct answer is D Increase to assets Increase to liabilities When Bahringer ... View the full answer