1. Company "J" sells merchandise for $30,000 (delivered) on August 20, 2022, to customer "F" who pays (in full) using her credit card. The credit card company charges a 3% fee for each transaction. Record this transaction, using journal entries, from the perspective of Company "J". Also indicate, when reporting journal entries, if the accounts belong to assets, liabilities, or equity and whether the account balance increases or decreases because of the transaction.
2. Explain what a contra-revenue account is. In which financial statement is a contra-revenue account found?
3. What are net sales? Net of what? List three examples seen in class.
4. On July 15, 2022, Company "M" sell services to Company "N" for $3.5 Million. The terms are 10/5 n/30. Company "N" pays the full price on July 17, 2022. Record this set of transactions using journal entries. Add assets, liabilities, equity labels to each accounts reported.
5. Why/when do accounts receivables require managerial estimations?