Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer.The credit card 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) Decrease assets and equity by $250
C) Increase assets by $5,000
D) Increase equity by $5,000
Correct Answer:
Verified
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