Question

Weygandt, Financial Accounting, 10e FINANCIAL ACCOUNTING (ACCT 100/ BU Grace Period: 2 days left Regist Assignment Gradebook ORION Downloadable eTextbook int CALCULATOR FULL SCREEN PRINTER VERSION «Аск On March 3, Kitselman Appliances sells $774,300 of its receivables to Monty Inc. Monty 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit Mar. 3 (b) On May 10, Fillmore Company sold merchandise for $19,800 and accepted the customer's America Bank MasterCard, America Bank charges a 2% service charge for credi card sales. Prepare the entry on Fillmore Company's books to record the sale of merchandise. (Omit cost of goods sold entries.) (Credit account titles are automatical Indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit May 10 a 22 A

Answer 1

Answer

Journal entries

Mar 3

Account receivable acc dr. 751070

Finance charge acc dr. 23230

To Sales Acc. 774300

(Being 3 % finance charge exist)

May 10

Bank Acc dr. 19404

Bank charge acc dr. 396

To sales 19800

(Being merchandise sold for 19800 with 2 % bank charge on credit card )

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