Elliston Company accepted credit card payments for $10,000 of services provided to customers. The credit card company charges a 3% fee for handling the transaction. Which of the following describes the effect of this transaction?
A. Increase net income by $10,000
B. Increase assets by $10,000
C. Increase revenue by $9,700
D. Increase stockholders' equity (retained earnings) by $9,700
Answer: D
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