Attached are the two exercises I need assistance with. I am having a bit of difficulty calculating annual depreciation.
The journal entries would be as follows:
To record sale of receivables:
DR: Cash 679,000
DR: Finance charge expense 21,000
CR: Receivables 700,000
To record the sale of merchandise:
DR: Cash 3,840
DR: Service charge expense 160
CR: Revenue 4,000
DR: Cost of goods sold 4,000
CR: Merchandise Inventory 4,000
As of 1/1/02 we have a balance of the following:
Cost - accumulated ...