Sold a tent and other items on credit to Justin Williams; issued Sales Slip 1101 for $600 plus sales tax of $48.

 May1 Sold a tent and other items on credit to Justin Williams; issued Sales Slip 1101 for $600 plus sales tax of $48.

JCPenney issues its own credit cards to its customers who have established credit with them. It's customers used these cards to charge $300 worth of sales. JCPenney would record these sales by:

debiting Accounts Receivable $300 and crediting Sales $300.

When a business makes a sale on a bank credit card, the business is ultimately responsible for collecting the amount owed from the customer.

False

The Sales Returns and Allowances account is classified as

a contra revenue account.