choose correct option and give short explanation When recording credit or debit card sales using the net method,a. cash received equals sales.b. cash received equals sales minus the fee assessed by the cardprocessing company.c. cash received equals sales plus the fee assessed by the cardprocessing company.d. cash isn't received by the seller until the customer pays his or hercredit card statement.

The correct answer is:b. cash received equals sales minus the fee assessed by the card processing…

Answered: When recording credit or debit card…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 3MC: If a customer pays with a credit card and the service has been provided, which of the following...

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Similar questions

Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. sold goods to customers on credit B. collected cash from customer accounts C. sold goods to customers for cash D. collected cash in advance for goods to be delivered later
Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
Suppose we collected cash from a charge customer and the debit was to Cash and the credit to Sales. How and when would this error be discovered?
Which of these transactions requires a debit entry to Cash? A. paid balance due to suppliers B. sold merchandise on account C. collected balance due from customers D. purchased supplies for cash
What does a debit balance in the cash short and over account represent? What does a credit balance in this account represent?
Will an accounts receivable balance increase with a debit or a credit entry? How do you know?
What accounts are affected when goods are sold on credit? (Check all that apply) Accounts Receivable Cash Revenue Owner's Withdrawals
Customer deposits (prepayments) are recorded - Select one: a. as debits to accounts receivable for the customer b. as negative sales invoices C. as credits to accounts receivable for the customer O d. when the customer makes a partial payment on account
Credit sales are recorded by crediting an account receivable for specific customer. True or false?
Why should sales to and receipts of cash from credit customers be recorded and posted immediately?
The sales journal is used to record a. Credit sales. d. Cash purchases. b. Cash sales. e. Credit purchases. c. Cash receipts.
Which of the following is the correct journal entry to record a sale to a customer on account? A) Debit Cash Credit Sales B) Debit Sales Credit Accounts Receivable C) Debit Accounts Receivable Credit Cash D) Debit Accounts Receivable Credit Sales

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