Firms have the option of recording credit card expense as a discount from sales or as a selling expense.

Name: Firms have the option of recording credit card expense as a discount from sales or as a selling expense.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms can choose to record the fees they pay for credit card transactions either as a reduction from sales (a discount) or as a selling expense, depending on their accounting policies and how they prefer to present these costs in their financial statements.

Firms Have the Option of Recording Credit Card Expense as a Discount