Business Finance
accounting quiz question

Question Description

i got this ? wrong on a quiz and i dont know why. any help would be appreciated

http://imgur.com/6P4dbyk

Final Answer

                                                                  Gregory Company

Accounts receivable                                                                                   $13,000

Credit Card Company charges for collection($13,000*21%)                     $2,730

$2,730 is the difference between Cash A/C and Accounts Receivable and both are asset accounts.

Charges of credit card company will increase expense, decrease net profit and ultimately decrease equity.

B.decrease assets and equity by $2,730.

AN786JUM (924)
Purdue University

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