Consider these transactions: (a) Galvao Restaurant accepted a Visa card in payment of a $200 lunch bill.

Question:

Consider these transactions:
(a) Galvao Restaurant accepted a Visa card in payment of a $200 lunch bill. The bank charges a 3% fee. What entry should Galvao make?
(b) Stone Company sold its of $65,000. What entry should Stone make, given a service charge of 3% on the amount of receivables sold?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...