When a merchant sells merchandise and lets the customer pay with a VISA credit card:

A.

The merchant's

pointminusofminussale

terminal is linked to a VISA server which automatically credits the merchant's bank account for the full sale amount.

B.

At the time of sale, Credit Card Receivable is debited and Sales Revenue is credited for the discounted portion of the sale amount.

C.

The strategy may increase sales dramatically, with no additional costs involved.

D.

The credit card discount is similar to interest expense and is reported on the income statement separately from operating income as other income (expense).