Florence is a highly paid fashion consultant who earns $100 per hour. She has 16 hours per day that she can allocate to work or
leisure, and she decides to work for 12 hours. Now suppose one of Florence's clients is featured on the front page of Vague, an influential fashion magazine. As a result, Florence's consulting fee now rises to $500 per hour. Florence decides to work only 10 hours per day. Draw Florence's new time allocation budget line, with income on the vertical axis and hours of leisure on the horizontal axis, and illustrate the indifference curve at her optimal choice. Choose the correct statement.
1 answer:
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Answer:
B.
Explanation:
Credit card is one of the most common way of making payment while a customer purchases anything in the market. The credit card company charge an amount that is payable by the seller.Thus, it is an expense for the one selling the product.
Given:
Credit card fee: 2%
Sales = $2,700
Credit card charges can be calculated as:
Credit card charges = Sales*Credit card fee
Credit card charges = $2,700*2%
Credit card charges = $54
Now, credit card charge is an expense so it will be debited. The amount is yet to be received so accounts receivable will also be debited. The revenue has been earned so it will be credited.
Thus, the journal entry for the given transaction has been attached below:
