Question
EXERCISE 3 Listed below are two independent situations involving the disposition of receivables 1. Fultz Company sells $300,000 of its receivables to Quick Factors, Inc.
EXERCISE 3
Listed below are two independent situations involving the disposition of receivables
1. Fultz Company sells $300,000 of its receivables to Quick Factors, Inc. Quick Factors assesses a finance charge of 2% of the amount of receivables sold.
Instructions: Prepare the journal entry to record the sale of the receivables on Fultz Company's books.
2. A restaurant is the site for a large company party. The bill totals $3,000 and is charged by the patron on a Visa credit card.
Instructions: Assume a 3% service fee is charged by Visa. Record the entry for the transaction on the restaurant's books.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
