Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer.The credit card company charges a 5% service charge.The collection of cash from the credit card company when it settles the account receivable balance will act to:
A)increase assets by $1,045.
B)decrease assets and equity by $55.
C)increase assets by $1,100.
D)none of these answer choices are correct.

Question

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The Answer of Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer.The credit card company charges a 5% service charge.The collection of cash from the credit card company when it settles the account receivable balance will act to:
A)increase assets by $1,045.
B)decrease assets and equity by $55.
C)increase assets by $1,100.
D)none of these answer choices are correct.

Glebe Company Accepted a Credit Card Account Receivable in Exchange