Glebe Company Accepted a Credit Card Account Receivable in Exchange

Multiple Choice

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.