Which of the following is not true regarding a credit card expense?
A) Credit card expense is not recorded by the seller.
B) Credit card expense may be classified as a selling expense.
C) Credit card expense is a fee the seller pays for services provided by the card company.
D) Credit card expense may be classified as a "discount" deducted from sales to get net sales.
E) Credit card expense may be classified as an administrative expense.

Question

Quizplus · Accepted Answer

Credit card expense is recorded by the seller as a fee paid to the credit card company. If a seller accepts payment through credit card, they will have to pay a certain percentage or flat fee to the credit card company for their services. This fee will be recorded as a credit card expense.

Which of the Following Is Not True Regarding a Credit