Which method is used to record a credit card purchase in QuickBooks?

• A. Enter a vendor credit
• B. Record it as a cash expense
• C. Enter Credit Card Charges on the home screen and enter the information as if it were a bill.
• D. Charge it to accounts receivable

Answer: (C)

When you record a credit card purchase, you’re recognizing a liability to the card issuer and allocating the expense to the right accounts. The correct approach in QuickBooks is to use the Credit Card Charges entry (on the home screen) and enter the details as if it were a bill. This records the expense and creates a credit card liability that you’ll pay off when you pay the card bill. Entering it as a cash expense would miss the liability you owe to the card, a vendor credit is for reducing what you owe to a supplier, and charging to accounts receivable would be for money owed to you, not what you owe for a purchase.