questions on Accounting?

Question

When a customer purchases something with a credit card like Mastercard or VISA why do retailers record it as cash sales?

Answer 1

Credit is issued to the buyer/owner of the credit card. To the retailer, it is a cash transaction since they are reimbursed by the credit card company.

Answer 2

With acrual method, a sale is recorded at the time of sale.

The money owed the merchant is recorded as accounts receivables until actually collected, although Visa or M/c are almost as good as cash.