Explore BrainMass

Explore BrainMass

    Accounting - Journal Entries

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Presented below are two independent situations.

    (a) On March 3, Lisa Ceja Appliances sells $700,000 of its receivables to Horatio
    Factors Inc. Horatio Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Lisa Ceja Appliances' books to record the sale of the receivables.

    (b) On May 10, Worthy Company sold merchandise for $4,000 and accepted the customer's Firstar Bank MasterCard. At the end of the day, the Firstar Bank MasterCard receipts were deposited in the company's bank account. Firstar Bank charges a 4% service charge for credit card sales. Prepare the entry on Worthy Company's books to record the sale of merchandise.

    © BrainMass Inc. brainmass.com October 9, 2019, 6:17 pm ad1c9bdddf

    Solution Preview

    Hi there,

    Here are your entries:

    (700,000 X 3% = 21,000 ; 700,000 - 21,000 = ...