Einstein Company Accepted Credit Card Payments for $20,000 of Services

Einstein Company accepted credit card payments for $20,000 of services provided to customers. The credit card company charges a 3% service charge. This transaction would

A) increase revenue by $20,000.
B) increase assets by $20,000.
C) increase Retained Earnings by $19,400.
D) a and C.The credit card sale increases assets by $19,400 (accounts receivable - credit card) , increases revenue by $20,000, and increases expenses by $600. This increases net income and equity (retained earnings) by $19,400.

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