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marysya [2.9K]
3 years ago
14

Jill just made a purchase online. The store that she bought from gave her the option to pay with a check, money order, or credit

card. The item will not be shipped until her payment arrives. Why would Jill want to use a credit card instead of a money order or check? Explain.
Business
1 answer:
Readme [11.4K]3 years ago
6 0

Answer:

The credit card is the most effective method of payment.

Explanation:

The store will not ship the item until the payment is accredited to their account. Because of this, Jill needs to pick the payment  method that have the fastest clear time.

The Check: usually takes about two business days for a deposited check to clear.

Money Order: It depends on the bank. Some banks allow for money orders to be cleared and deposited almost immediately, and some require at least one business day for it to clear.

Credit Card: almost all the time payments can take place immediately.

The obvious choice is Credit Card payment for the instant clear of the funds in the store account.

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For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited

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