Which of these statements about Visa credit card sales is incorrect?

(a) The credit card issuer conducts the credit investigation of the customer.

(b) The retailer is not involved in the collection process.

(c) The retailer must wait to receive payment from the issuer.

(d) The retailer receives cash more quickly than it would from individual customers.

Good Stuff Retailers accepted $50,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Good Stuff Retailers will include a credit to Sales of $50,000 and a debit(s) to:

(a) Cash $48,000 and Service Charge Expense

$2,000.

(b) Accounts Receivable $48,000 and Service Charge Expense $2,000.

(c) Cash $50,000.

(d) Accounts Receivable $50,000.