Question

quantum mechanics shop sells a bicycle to reniel, a costumer who uses a local card(a national credit card, but not issued by an bank) in recrding this sale the entity should record​

Answer 1

Answer:

the journal entry to record this sale should be:

Dr Accounts receivable X

Dr Credit card fees Y

    Cr Sales revenue X+Y

Explanation:

The journal entry to record sales using credit cards issued by banks, e.g. VISA, MasterCard, etc., which pay immediately or almost immediately (the same day or the following day) and manage the payments through the company's bank account:

Dr Cash X

Dr Credit card fees Y

    Cr Sales revenue X+Y

Since credit cards not issued by banks (e.g. many American Express cards are issued by American Express itself not by banks) do not pay immediately, a company must record an account receivable, it cannot record cash. In order to collect the payment, the company must submit the credit card receipt to the credit card company and then wait for it to be processed and paid. This may take a few days or even a couple of weeks.