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TRUE OR FALSE Sales to customers who use nonbank credit cards, such as American Express, are generally treated as credit sales. Retailers record all credit
TRUE OR FALSE
- Sales to customers who use nonbank credit cards, such as American Express, are generally treated as credit sales.
- Retailers record all credit card sales as charge sales.
- The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do not accept all credit cards.
- The document issued by the seller that informs the buyer of the details of sales returns is called a credit memorandum.
- A seller may grant a buyer a reduction in selling price and this is called a sales allowance.
- The effect of a sales return and allowance is a reduction in sales revenue and a decrease in cash or accounts receivable.
- Merchandise Inventory normally has a debit balance
- A buyer who acquires merchandise under credit terms of 1/10, n/30 has 30 days after the invoice date to take advantage of the cash discount.
- Discounts taken by the buyer for early payment of an invoice are called Cash Discounts by the buyer.
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