When a customer makes purchases with a national credit card the retailer?

Customer payments made with credit cards are received from the bank after deduction of transaction fees by the retailer.The customer, however, pays the actual amount to the bank on the specified future date.Credit cards are the most commonly used consumer credit cards.


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Why do sellers allow customers to use credit cards?

Sellers are allowed to accept credit cards except: To be able to charge customers more due to fees and interest.Providing credit for customers who cannot pay.Avoid having to evaluate each customer's credit standing.

Is the legal right to receive cash from a credit sale and represents an asset of the company?

Cards In This Set

Trade ReceivableThe legal right to receive cash from a credit sale and represents a asset to a company
Interest on a note calculation?Face amount x annual rate x fraction of annual period
Receivables turnover formula?Net credit sales / average accounts receivables

What is bad debt expense considered?


An expense associated with bad debt is called a bad debt expense.

How do sellers benefit from allowing their customers to use credit cards?

What benefits do sellers receive when they allow their customers to use credit cards?.The majority of companies support third party credit cards such as Visa, Mastercard, or American Express for paying for their products and services.

How do sellers benefit from allowing their customers to use credit cards How are credit card transactions recorded?

Sellers benefit from allowing their customers to use their credit cards, because it allows the sellers to receive full payment because once credit is established with a credit card company or bank, the customers does not have to open an account with each store.

At what amount are accounts receivable recorded?


Net realizable value is attributed to accounts receivable.This is how much money will be collected from those accounts.ACE Company will report $960,000 in "net accounts receivable" on its balance sheet.