Use this information to answer the following question. Alfalfa Company experienced the following events during the period:
The entry to record transaction 2 would include a(n)
A) increase in Accounts Receivable for $800.
B) increase in Sales for $800.
C) decrease in Credit Card Expense for $32.
D) decrease in Cash for $768.

Question

Use this information to answer the following question. Alfalfa Company experienced the following events during the period:
 The entry to record transaction 2 would include a(n)
A) increase in Accounts Receivable for $800. 
B) increase in Sales for $800. 
C) decrease in Credit Card Expense for $32. 
D) decrease in Cash for $768.

Quizplus · Accepted Answer

Transaction 2 represents the sale of $800 of merchandise on credit. This event increases the company's Sales by $800. Therefore, the entry to record transaction 2 would include an increase in Sales for $800. None of the other answer choices are correct.

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