Final answer:
For a company accepting a credit card payment, it would credit a liability account representative of the credit card sale rather than debiting cash, as the actual cash isn't received immediately but is guaranteed by the credit card company's short-term loan.
Step-by-step explanation:
When a company makes a sale and accepts a credit card payment from a customer, the company should not debit Cash because the actual cash is not immediately received. Instead, the company would typically credit a liability account called something like 'Credit Card Payable' or 'Credit Card Sales' to reflect the short-term loan secured by the credit transaction. When the credit card company transfers money to the seller, it is providing a service to the seller, essentially guaranteeing payment. The credit card is not considered money but rather a short-term loan as the user will have to settle the debt at a later date. Thus, the sale would increase accounts receivable or a similar liability account, but not cash until the credit card company actually pays the seller at the end of the billing cycle.