Barron Company accepts a credit card as payment for $1,200 of services provided to a customer. The credit card company charges a 5% handling fee for its collection services. Select the answer that shows how the entry to recognize the event would affect Barron’s financial statements.

Multiple Choice

A.        Assets will increase by $1,140.

B.        Revenue will increase by $1,200.

C.        Expenses will increase by $60.

D.        All of the answers describe effects that will occur as a result of recognizing this event.