While preparing its bank reconciliation, Maynard Company determined that its bank had collected a $650 account receivable for the company and deducted a $25 collection fee. Which of the following shows the effect of this transaction on the financial statements? Assets=Liab.+EquityRev.?Expenses=Net Inc.Cash FlowA.(25)=NA+(25)NA ?25=(25)625OAB.625 =NA+625 650 ?25=625 650OAC.(25)=NA+(25)NA ?25=(25)650OAD.625 =NA+625 650 ?25=625 625OA

A. Option A
B. Option B
C. Option C
D. Option D


Answer: A

Business

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