Asked by Tyler Slaven on Jul 24, 2024
Verified
Sales to customers who use bank credit cards, such as MasterCard and VISA, are generally treated as credit sales.
Credit Sales
Transactions where the customer purchases goods or services on credit and pays the seller at a later date.
Bank Credit Cards
Payment cards issued by banks that allow cardholders to borrow funds within a pre-approved limit for purchases or cash advances.
- Recognize the impact of purchase discounts, sales discounts, and credit card sales on financial statements.
Verified Answer
WG
Wilson GarciaJul 25, 2024
Final Answer :
False
Explanation :
Sales to customers who use bank credit cards, such as MasterCard and VISA, are generally treated as cash sales because the merchant receives payment from the card issuer, not directly from the customer on credit terms.
Learning Objectives
- Recognize the impact of purchase discounts, sales discounts, and credit card sales on financial statements.