Your Company accepted credit card receivables in exchange for $50,000 of services provided to customers. The...

 

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Your Company accepted credit card receivables in exchange for $50,000 of services provided to customers. The credit card company charges a 5% service charge. This transaction would decrease expenses by $2,500. increase cash by $50,000. increase Retained Earnings by $47,500. decrease liabilities by $2,500. increase Accounts Receivable by $50,000. Your Company accepted credit card receivables in exchange for $50,000 of services provided to customers. The credit card company charges a 5% service charge. This transaction would decrease expenses by $2,500. increase cash by $50,000. increase Retained Earnings by $47,500. decrease liabilities by $2,500. increase Accounts Receivable by $50,000.

Answer rating: 100% (QA)

Service Charge Amount Receivable x Percentage of service change 50000 x 5 2500 This ser... View the full answer