Victorino Company Accepted a Credit Card Payment in Exchange for $10,000

Multiple Choice

Victorino Company accepted a credit card payment in exchange for $10,000 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

A) increase assets by $9,500.
B) decrease assets and equity by $500.
C) increase assets by $10,000.
D) none of these.