Asked by Isabella Garcia on May 20, 2024

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Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

A) debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
B) debit to Cash and a credit to Sales
C) debit to Cash, credit to Credit Card Expense, and a credit to Sales
D) debit to Sales, debit to Credit Card Expense, and a credit to Cash

Bank Credit Cards

Financial instruments issued by banks allowing cardholders to borrow funds up to a pre-approved limit for purchases or cash advances.

Credit Card Expense

Costs incurred from using a credit card, including interest charges, annual fees, and transaction fees.

Sales

The total amount earned from selling goods or services before any costs or expenses are deducted.

  • Identify the distinctions among several forms of sales transactions, such as cash sales, sales on account, and purchases made using bank credit cards.
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Verified Answer

KW
Kenyetta WallerMay 23, 2024
Final Answer :
B
Explanation :
Sales to customers using bank credit cards like MasterCard and Visa are typically recorded as a debit to Cash because the merchant receives the cash (less any fees) from the card processing company, and a credit to Sales, reflecting the revenue earned from the sale.