The Kansas Company makes credit sales to customers who use bank credit cards (such as Visa or MasterCard) as well as to customers who use non-bank credit cards (such as American Express or Diner's Club). In this situation:
A. Sales to customers using bank credit cards are recorded as cash sales.
B. Regardless of the type of credit card used by the customer, Kansas records a receivable from the credit card company when a credit sale is made.
C. Regardless of the type of credit card used by the customer, Kansas estimates uncollectible accounts related to these credit sales using the allowance method.
D. The fees charged by the credit card company reduce the dollar amount of sales recorded.
A
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