Agreement Accounts Receivable With Credit Card In San Diego
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Credit Cards as Liabilities The balance owed on a credit card can be treated either as a negative asset, known as a “contra” asset, or as a liability. In this article we'll explore the optional method of using liability accounts, however, there are several advantages to using the Contra Asset Approach.
All DoD guidance and regulations indicate that sales of merchandise or services to an authorized customer using a credit card should be recorded as a receivable.
Answer and Explanation: The answer is False. Recording credit sales involves crediting Sales Revenue and debiting Accounts Receivable (since accounts receivable increase with an credit sale and the accounts receivable account is considered an asset).
A cardholder agreement is a legal document outlining the terms under which a credit card is offered to a customer. Among other provisions, the cardholder agreement states the annual percentage rate (APR) of the card, as well as how the card's minimum payments are calculated.
