Suppose a customer has credit with J.C. Penney and can buy items on credit as long as the total amount owed does not exceed $1,000; this is an example of
A) installment account.
B) open charge account.
C) revolving charge account.
D) trade credit.

Question

Quizplus · Accepted Answer

A revolving charge account allows the customer to make purchases on credit up to a certain limit, in this case, $1,000, and pay off the balance over time while continuing to make new purchases.

Suppose a Customer Has Credit with J