The Ainlay Corporation Accepted a Credit Card for a Sale

Short Answer

The Ainlay Corporation accepted a credit card for a sale of $2,000 on December 16, 2014. The credit card company charges a fee of 4%. On January 5, 2015, Ainlay received payment from the credit card company. Indicate whether each of the following statements is true or false.
1. Ainlay should record the $2,000 revenue in 2015 when the cash is received
2. The entry on December 16, 2014 increases total expenses on the 2014 income statement
3. The collection of cash in 2015 has no effect on 2015 net income
4. Ainlay should record an account receivable of $2,000 on December 16, 2014
5. The collection of cash does not affect total assets in 2015