Additional Exercise 207 Listed below are two independent situations involving th

Question

Additional Exercise 207 Listed below are two independent situations involving the disposition of receivables. Morales Company sells $320,000 of its receivables to Instant Factors, Inc. Instant Factors assesses a finance charge of 3% of the amount of receivables sold Prepare the journal entry to record the sale of the receivables on Morales Company's books. (Credit account tities are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cash 10400 Service Charge Expense 9600 Accounts Receivable 20000 A restaurant is the site for a large company party. The bill totals $3,400 and is charged by the patron on a Visa credit card. Assume a 3% service fee is charged by Visa. Record the entry for the transaction on the restaurant's books Credit account titles are automatically indented when the amount is entered. Do not indent manual y Account Titles and Explanation Debit Credit

Explanation / Answer

Journal Entries Date Account Title and explanation Debit Credit ---------- Cash $               3,10,400 Service Charges Expenses $                     9,600          To Account Receivable $                 3,20,000 Cash $                     3,298 ---------- Service Charges Expenses $                        102          To Service Fees $                       3,400

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.