Recording the Sale of Receivables and Merchandise
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Presented below are two independent situations.
(a) On March 3, Hinckley Appliances sells $580,000 of its receivables to Marsh Factors Inc. Marsh Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Hinckley Appliances' books to record the sale of the receivables.
(b) On May 10, Cody Company sold merchandise for $3,800 and accepted the customer's Allstar Bank MasterCard. At the end of the day, the Allstar Bank MasterCard receipts were deposited in the company's bank account. Allstar Bank charges a 4% service charge for credit card sales. Prepare the entry on Cody Company's books to record the sale of merchandise.
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For your convenience, attached is a formatted MS Excel spreadsheet containing illustrated examples about recording the sale of receivables and merchandise to company books.
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For your convenience, attached is a formatted MS Excel spreadsheet containing the information below. I have also listed a reference source, which may prove very helpful in gaining a better understanding of the subject matter.
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E9-5 - Presented below are two independent situations.
(a) (a) On March 3, Hinckley Appliances sells $580,000 of its ...
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