Answer and Explanation:
The recording and the computations are as follows
a. The recording of the October revenue transactions are shown below:
DATE INVOICE NO. ACCOUNT DEBITED POST.REF.
ACCOUNT REC. DR. FEES EARNED CR.
Oct 2 321 Pryor Co.
380
Oct 3 322 Armor Co.
540
Oct 14 323 Pryor co.
190
Oct 24 324 Rose co.
790
Oct 31 1900
b) Now the total amount for account receivable and fees earned is
Account receivable = 1900
Fees earned = 1900
c) The October 31 balance is
October 31 balance
= $380 + $190 - $380
= $190
Answer:
c. seller receives cash sooner than if credit is granted directly to the customers
d. may allow seller to increase sales volume
Explanation:
When a customer uses a credit card, the bank that issued the card pays the seller immediately, and later, the bank recovers the money plus interest from the customer.
So this method allows for a faster collection of cash (basically immediatly) than if the seller granted the credit directly to the customer.
Credit cards also allow seller to increase sales volume because many people lack the cash necessary to pay down the full value of the purchase.
C you’re taking a class to show you want to have more skill
<em />I think it is C but don't quote me on it.