Listed below are two independent situations involving the disposition of receivables.

1. Morales Company sells $320,000 of its receivables to Instant Factors, Inc. Instant Factors assesses a finance charge of 3% of the amount of receivables sold.

Instructions

Prepare the journal entry to record the sale of the receivables on Morales Company's books.

2. A restaurant is the site for a large company party. The bill totals $3,400 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.