Simonic Retailers Accepted $80,000 of Citibank Visa Credit Card Charges

Multiple Choice

Simonic Retailers accepted $80,000 of Citibank Visa credit card charges for merchandise sold on July 1.Citibank charges 4% for its credit card use.The entry to record this transaction by Simonic Retailers will include a credit to Sales Revenue of $80,000 and a debit to (or debits to)

A) Cash $76,800 and Service Charge Expense $3,200.
B) Accounts Receivable $76,800 and Service Charge Expense $3,200.
C) Cash $76,800 and Interest Expense $3,200.
D) Accounts Receivable $80,000.