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Chapter 9 - Chapter 9 How do sellers benefit from allowing...

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Chapter 9: How do sellers benefit from allowing their customers to use their credit cards? Sellers benefit from allowing their customers to use their credit cards, because it allows the sellers to receive full payment because once credit is established with a credit card company or bank, the customers does not have to open an account with each store. Customers using these cards can make single monthly payments instead of several payments to different creditors and can defer their payments. Many sellers allow customers to use third party credit cards and debit cards. Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses? The direct write-off method usually does not best match sales and expenses because bad debts expense is not recorded until an account becomes uncollectible called bad debts, which often occurs in a period after that of the credit sale, revenues and expenses incurred will not match.
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