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

Question

Madeline Johnson · Accepted Answer

Final Answer : B, Explanation :  Sales to customers using bank credit cards like MasterCard and VISA are recorded as a debit to Cash because the funds are typically received quickly from the card processing company, and a credit to Sales to reflect the revenue earned from the sale.

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