1. Name at least three accounts that would normally appear in the financial statements of a merchandising business, but would not appear in the chart of accounts of a service business.
2. How does the accounting for sales to customers using bank credit cards, such as MasterCard and VISA, differ from accounting for sales to customers using nonbank credit cards, such as American Express? Explain.
3. Sometimes a retailer will not accept American Express, but will accept MasterCard or VISA. Why would a re- tailer accept one and not the other?