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JURC 12, ZUIO. 89.7 Presented below are two independent situations. On March 3, Kitselman Appliances sells $650,000 of its receivables to Ervay Factors Inc. Ervay Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (b) on May 10, Fillmore Company sold merchandise for $3,000 and accepted the cus- tomer's America Bank MasterCard, America Bank charges a 4% service charge for credit card sales. Prepare the entry on Fillmore Company's books to record the sale of merchandise. 630,500 19,500 EXERCISE 9-7 (a) Mar. 3 Cash ($650,000 - $19,500). Service Charge Expense (3% X $650,000)... Accounts Receivable....... (b) May 10 Cash ($3,000 - $120) ....... Service Charge Expense (4% X $3,000)..... Sales Revenue .......... 650,000 2,880 120 3,000