Citron Inc. pays transportation charges of

$200

for delivery of the merchandise sold to Megaton Co. What is the effect of this transaction in the books of Citron and Megaton?\ a. Retained earnings decrease by

$200

in the books of Citron Inc., and there is no effect in the books of Megaton Co.\ b. Retained earnings increase by

$200

in the books of Citron Inc., and there is no effect in the books of Megaton Co.\ c. Retained earnings increase by

$200

in the books of Citron Inc., and operating expenses increase by

$200

in the books of Megaton Co.\ d. Retained earnings decrease by

$200

in the books of Citron Inc., and operating expenses decrease by

$200

in the books of Megaton Co.

Citron Inc. pays transportation charges of $200 for delivery of the merchandise sold to Megaton Co. What is the effect of this transaction in the books of Citron and Megaton? a. Retained earnings decrease by $200 in the books of Citron Inc., and there is no effect in the books of Megaton Co. b. Retained earnings increase by $200 in the books of Citron Inc., and there is no effect in the books of Megaton Co. c. Retained earnings increase by $200 in the books of Citron Inc., and operating expenses increase by $200 in the books of Megaton Co. d. Retained earnings decrease by $200 in the books of Citron Inc., and operating expenses decrease by $200 in the books of Megaton Co