Use the financial statement effects template to show the effect of the cash Costco received during fiscal 2018 for membership fees and the recognition of membership fees revenue for fiscal 2018.
a) No effect on the income statement; increase in cash on the balance sheet.
b) Increase in revenue on the income statement; increase in cash on the balance sheet.
c) Decrease in revenue on the income statement; decrease in cash on the balance sheet.
d) Increase in expenses on the income statement; decrease in cash on the balance sheet