A retailer accepted Visa charge sales totaling $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) $500 and $480
B) $480 and $500
C) $480 and $480
D) $500 and $500

Question

Quizplus · Accepted Answer

The increase to Sales is $500, as that is the total amount of sales made. The increase to Cash is $480, as the retailer receives $500 minus the 4% credit card discount ($20), resulting in $480.

A Retailer Accepted Visa Charge Sales Totaling $500 and Deposited