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marysya [2.9K]
2 years ago
5

Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer. The credit c

ard company charges a 5% service charge. Recording the transaction in the company's accounting records will have what effect on the accounting equation?
a. Increase assets and equity by $4,750.
b. Increase equity by $5,000.
c. Increase assets by $5,000.
d. Decrease assets and equity by $250.
Business
1 answer:
Andrew [12]2 years ago
4 0

Answer:

increase assets and equity by $4,750

Explanation:

Based on the information given we were told that they accepted an account of a credit card account receivable for the exchange of the amount of $5,000 of the services that was provided to a customer in which the credit card company charges 5% service charge, Based on this if we are to Record the transaction in the company's accounting records the effect on the accounting equation will be:

Increase assets and equity by $4,750

Calculated as :

$5,000-($5,000*5% Service charge)

$5,000-$250

=$4,750

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Feeney Furniture prepared the following sales budget: Month Cash Sales Credit Sales March $19,000​ $11,000​ April $40,000​ $11,0
marusya05 [52]

Answer:

total cash collections in June = $101050

so correct option is A. $101,050

Explanation:

given data

month              cash sales                    credit sale

march                $19,000                        $11,000

April                   $40,000                       $11,000

May                    $43,000                       $35,000

June                   $59,000                       $50,000

to find out

total cash collections in June at Feeney Furniture

solution

we find here total cash collections in June that is express as

total cash collections in June = cash sale in June  + ( credit sale in June × 62% ) + ( credit sale in May × 30%) +  ( credit sale in April × 5%)   .............1

put here value we get

total cash collections in June = $59000  + ( $50000 × 62% ) + ( $35000 × 30%) +  ( $11000 × 5%)

total cash collections in June = $101050

so correct option is A. $101,050

8 0
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~

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Answer:

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Answer:

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Therefore, correct statement is

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