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The Yankee Corporation has recently begun to accept credit cards.On July 7,2016,Yankee made a credit card sale of $600.The credit card company charges a fee of 3%.
-Which of the following answers correctly describes the effect of the collection of cash from the credit card company on the financial statements of Yankee Corporation?

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The Yankee Corporation has recently begun to accept credit cards.On July 7,2016,Yankee made a credit card sale of $600.The credit card company charges a fee of 3%.
-Which of the following answers correctly describes the effect of the collection of cash from the credit card company on the financial statements of Yankee Corporation?

Quizplus · Accepted Answer

The collection of cash from the credit card company will result in an increase in cash and a decrease in revenue for Yankee Corporation. The revenue decrease is due to the 3% fee charged by the credit card company, reducing the original sale amount of $600. There will be no effect on expenses or liabilities.

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