Some credit card receipts must be treated as receivables rather than cash

Some credit card receipts must be treated as receivables rather than cash

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Some credit card receipts must be treated as receivables rather than cash. For example, many gas  stations and department stores provide customers with credit cards that can be used to buy goods or  services only at the issuer's place of business. When a customer makes a purchase, the company  must debit the customer's account and credit the sales account. There are also some major credit 
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Unformatted text preview: cards that are not issued by banks, and receipts from these cards must be sent to the credit card company for reimbursement rather than deposited at a bank. After submitting credit card receipts totaling $1,000 directly to a credit card company, the company that makes the sale records the entry by debiting accounts receivable and crediting sales....
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