On May 10, Fillmore Company sold merchandise for $19,000 and accepted the customer’s America Bank MasterCard. America Bank charges a 4% service charge for credit card sales. Prepare the entry on Fillmore Company’s books to record the sale of merchandise.
May 10 Cash Debit($19,000 – $760) = $18,240
Service Charge Expense Debit(4% × $19,000) = $760
Sales Revenue credit 19,000
On March 3, Kitselman Appliances sells $649,500 of its receivables to Ervay Factors Inc. Ervay Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances’ books to record the sale of the receivables.
Mar. 3 Cash Debit ($649,500 – $19,485) = $630,015
Service Charge Expense Debit (3% × $649,500) = $19,485
Account Receivable credit 649,500
May 10 Cash Debit($19,000 – $760) = $18,240
Service Charge Expense Debit(4% × $19,000) = $760
Sales Revenue credit 19,000
On March 3, Kitselman Appliances sells $649,500 of its receivables to Ervay Factors Inc. Ervay Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances’ books to record the sale of the receivables.
Mar. 3 Cash Debit ($649,500 – $19,485) = $630,015
Service Charge Expense Debit (3% × $649,500) = $19,485
Account Receivable credit 649,500
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