When Customers Make Purchases with a National Credit Card the Retailer

question 182

Multiple Choice

When customers make purchases with a national credit card the retailer

• A) is responsible for maintaining customer accounts.
• B) is not involved in the collection process.
• C) absorbs any losses from uncollectible accounts.
• D) receives cash equal to the full price of the merchandise sold from the credit card company.

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Definitions:

Book Of Original Entry

The book of original entry, also known as the journal, is the first place where transactions are recorded in the accounting system according to the date order.

Journal

A detailed record where all financial transactions of a business are entered chronologically.

Bookkeeping Device

A tool or system used for recording and organizing financial transactions.

Ledger

A comprehensive collection of a company's financial accounts, including assets, liabilities, equity, revenue, and expenses.