A retailer accepted Visa charge sales totaling $1,500 and deposited the charge slips in the bank.Assuming a credit card discount expense of 4 percent,what would be the increase to Cash and the increase to Sales,respectively?
A) $1,500 and $1,440
B) $1,440 and $1,500
C) $1,440 and $1,440
D) $1,500 and $1,500

Question

Quizplus · Accepted Answer

The increase to Sales is the total amount of sales, which is $1,500. The increase to Cash is the sales amount minus the credit card discount expense (4% of $1,500), which is $1,440.

A Retailer Accepted Visa Charge Sales Totaling $1,500 and Deposited