Suppose that you start up Fantastic Sandwich shop. You invested your savings of $20,000 and borrowed $70,000 from your relatives. Although sales in the first few months are good, you see that you may not have sufficient cash to pay expenses and maintain your inventory at acceptable levels, at least in the short term. You decide you may need to use one or more credit cards to fund the possible cash shortfall. 

How is credit card debt recorded by the company?

What options does the company have in the short term? in the long term?

Answer rating: 100% (QA)

When a company uses credit cards to fund expenses or cash shortfalls the credit card debt is recorde... View the full answer