Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as:

a. sales on account

b. sales returns cash

c. sales when the credit card company remits the cash

Question

Business

Aubrey

8 June, 08:29

Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as:

a. sales on account

b. sales returns cash

c. sales when the credit card company remits the cash

+1

Answers (1)

Know the Answer?

Pamela Hodges · Answer 1

The correct answer is letter "C": cash sales.

Explanation:

Credit card payments using processing systems such as Visa or MasterCard are considered as cash sales since they allow consumers to purchase goods or services instantly. For accounting purposes, the transaction is recorded as a debit to cash and a credit to sales and the fees associated are registered as expenses.

Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as:a. sales on accountb. sales returns cashc. sales when the credit card company remits the cash

Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as:

a. sales on account

b. sales returns cash

c. sales when the credit card company remits the cash