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Ch(3) : Accounting for Receivable73ACCOUNTING FOR CREDIT CARD SALES:The retailer generally considers sales from the use of national credit card (Visa &Master Card) sales as cash sales and for (American &Diner%u2019s Club Card)sales ascredit sales.There is a time period, between the sale to the customer and the collection of cash from the credit Card company.Many companies make agreements with Credit Cardcompanies, such as VISAand MasterCard, which enable them to sell products or services to customers who use Credit Cardto pay for their purchases. %uf076If the customer pays with the bank credit cardsuch as VISAand MasterCard, the retailer may be able to deposit credit card receipt along with cheques and record it as cash sales rather than an account receivable. Illustration 3-6:On September 16, 2019, AhmedTravel Agency sold an airline ticket for BD500 to a customer who paid with VisaCard. If the services charge is 2% the company willonlyreceive BD490and the BD10is credit card expense. Show the Journal entry.GENERAL JOURNALDATEEXPLANATIONPRDEBITCREDITSept,162019Cash490Credit Card Expense(500 %u00d72%)10Service Revenues500To record a credit card sales less the services charge