Multiple Choice
When a merchant sells merchandise and lets the customer pay with a VISA credit card:
A) The strategy may increase sales dramatically,with no additional costs involved.
B) At the time of sale,Credit Card Receivable is debited and Sales Revenue is credited for the discounted portion of the sale amount.
C) The merchant's point-of-sale terminal is linked to a VISA server which automatically credits the merchant's bank account for the full sale amount.
D) The credit card discount is similar to interest expense and is reported on the income statement separately from operating income as other income (expense) .
Correct Answer:
Verified
Correct Answer:
Verified
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