JCPenney issues its own credit cards to its customers who have established credit with them. It's customers used these cards to charge $300 worth of sales. There is no sales tax associated with the sales. JCPenney would record these sales by:

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When JCPenney's customers use the store's credit cards to make purchases, the company is essentially extending credit to these customers. Therefore, JCPenney would record the transaction by debiting Accounts Receivable to recognize the amount owed by the customers and crediting Sales to record the revenue generated from the sale. This reflects the increase in receivables (an asset) and the increase in sales (revenue).

JCPenney Issues Its Own Credit Cards to Its Customers Who