Question

Alberta Company accepts a credit card as payment for $450 of services provided for the customer. The credit card company charges a 4% handling charge for its collection services. Select the answer that shows how the entry to record the sale would affect Alberta's financial statements.Assets = Liab. + Equity Rev. - Expenses = Ner Inc. CashA. 432 NA 432 432 NA 432 432 OAB. 432 NA 432 450 18 432 432 OAC. 432 NA 432 450 18 432 NAD. 450 NA 450 450 NA 450 NAa) Option Ab) Option Bc) Option Cd) Option D

Answer 1

Answer:

b) Option B

Explanation:

Total Sales will 450 and after deducting charges of 4% which is 18 as expense alberta received cash of 432. So asset will be increase in the form of cash by 432, equity will be increase in the form on net income of 432, revenue was 450 and expense was 18. So the correct option which represent the event on accounting equation is b) Option B.