Retailers generally consider sales from the use of national credit card sales as a
A) credit sale.
B) collection of an accounts receivable.
C) cash sale.
D) collection of a note receivable.

Question

Quizplus · Accepted Answer

National credit cards, such as Visa or Mastercard, are considered a form of electronic payment and are processed as cash sales. This means the funds from the sale are deposited directly into the retailer's bank account within a few days, without any waiting period for the credit card issuer to pay. While the retailer may pay a small processing fee to the credit card company, they do not have to worry about collecting outstanding balances or dealing with bad debts as they would with credit or note receivables.

Retailers Generally Consider Sales from the Use of National Credit