Norton Company has accounts receivable of $40,000 in its general ledger at July 31: During August, the following transactions occurred.

Aug. 1 Added 1% finance charges to $13,000 of credit card balances for not paying within the 30 day grace period.

15 Sold $21,000 of accounts receivable to Iron Factors Inc. who charge a 4% commission.

28 Collected $8,000 from Norton credit card customers including $400 of finance charges previously billed.

Instructions

(a) Journalize the transactions.

(b) Indicate the statement presentation of finance and service charges.