Simonic Retailers Accepted $90,000 of Citibank Visa Credit Card Charges

Multiple Choice

Simonic Retailers accepted $90,000 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 $90,000 and a debit(s) to

A) Cash $86,400 and Service Charge Expense $3,600.
B) Accounts Receivable $86,400 and Service Charge Expense $3,600.
C) Cash $86,400 and Interest Expense $3,600.
D) Accounts Receivable $90,000.