Agreement Accounts Receivable With Credit Card In Wake
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FAQ
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.
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).
If accounts receivable is negative, review for errors like overpayments or misallocations. Adjustments should be made to rectify and reconcile the balance. You need to review transactions, contact the Customers, provide refunds or make adjustments, update your accounting records, and monitor A/R balances.
Either refund the customer the balance by writing them an check and using accounts receivable for the account, or make a journal entry and debit AR for and credit revenue/income.
Therefore, when a journal entry is made for an accounts receivable transaction, the value of the sale will be recorded as a credit to sales. The amount that is receivable will be recorded as a debit to the assets. These entries balance each other out.
Under federal law, your credit card issuer is required to provide a copy of your agreement upon request. Look on the back of the credit card or on your latest monthly statement to find the name of the issuer.
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.
A credit card agreement is defined as the written document or documents evidencing the terms of the legal obligation, or the prospective legal obligation, between a card issuer and a consumer for a credit card account under an open-end (not home-secured) consumer credit plan.
Physical credit authorization forms have many security issues: They may get lost, stolen, or mishandled by employees. Having to type data manually may lead to errors and financial discrepancies. Physical forms are not encrypted, meaning anyone can read and understand the information.
