Question

Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) Cullumber Company accepted a Visa card in payment of a $1,700 lunch bill. The bank charges a 4% fee. What entry should Cullumber Company make? (b) Sheffield Corp. sold its accounts receivable of $61,600. What entry should Sheffield Corp. make, given a service charge of 4% on the amount of receivables sold?

Answer 1

The answer and procedures of the exercise are attached in the image below.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.