31. Sales resulting from the use of Visa and MasterCard are considered credit sales by the retailer.
32.A factor purchases receivables from businesses for a fee and collects the remittances directly from customers.
33. A major advantage of national credit cards to retailers is that there is no charge to the retailer by the credit card companies for their services.
34. Receivables may be sold because they may be the only reasonable source of cash.
35. If a retailer accepts a national credit card such as Visa, the retailer must maintain detailed records of customer accounts.
36. A note receivable is a written promise by the maker to the payee to pay a specified amount of money at a definite time.
37. The maturity date of a 1-month note receivable dated June 30 is July 30.
38. When the due date of a note is stated in months, the time factor in computing interest is the number of months divided by 360 days.
39. On the date of issue, a note receivable is recorded on the statement of financial position at its maturity value.
40. On the statement of financial position, notes receivable are valued at their cash (net) realizable value, identical to how accounts receivable are valued.