121.The Angle Corporation accepted a credit card for a sale of $2,000 on December 16, 2013. The credit card company charges a fee of 4%. On January 5, 2014, Angle received payment from the credit card...

121.The Angle Corporation accepted a credit card for a sale of $2,000 on December 16, 2013. The credit card company charges a fee of 4%. On January 5, 2014, Angle received payment from the credit card company. Indicate whether each of the following statements is true or false.


_____ a) Angle should record the $2,000 revenue in 2013 when the sale is made.
_____ b) Angle should record a credit card receivable account receivable of $2,000 on 12/16/13.
_____ c) The sale has no impact on the statement of cash flows in 2013.
_____ d) The collection of cash increases total assets in 2014.
_____ e) The entry on 12/16/13 increases total revenues and total expenses on the 2013 income statement.

122.Indicate whether each of the following statements is true or false.


_____ a) A benefit of making credit card sales is that there is no cost to the merchant.
_____ b) A benefit of accepting credit cards is that increased sales may be generated.
_____ c) Recording a credit card sale increases total assets and increases total equity.
_____ d) Recording the collection of cash from the credit card company increases cash and increases revenue.
_____ e) The income statement is not affected at the time the cash receipt is recorded.