question archive BD Rainey Company has the following accounts in its general ledger at July 31; Accounts Receivable $40
BD Rainey Company has the following accounts in its general ledger at July 31; Accounts Receivable $40
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BD Rainey Company has the following accounts in its general ledger at July 31; Accounts Receivable $40.000 and Allowance for Doubtful Accounts $2.500. During August, the following transactions occurred, Oct. 15 Sold $10.000 of accounts receivable to Good Factors, Inc, who assesses a 3% finance charge 25 Made sales of $700 on VISA credit cards. The credit card service charge ts 2%.
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Answer and Explanation:
a):-Oct. 15 Sold $10.000 of accounts receivable to Good Factors, Inc. who assesses a 3% finance charge.
The Journal entry is shown below:-
| Date | Accounts titles and Explanations | Debit | Credit |
| Oct 15 | Cash | $9,700 | |
|
Loss on sale of receivable / Factoring Expenses ($10,000×3%) |
$300 |
||
| Accounts receivable | $10,000 | ||
| (To record sale of accounts receivable) |
B):-.??Made sales of $700 on VISA credit cards, The cre dit card servica charge is 2%.
The Journal entry is shown below:-
| Date | Accounts titles and Explanations | Debit | Credit |
| Oct 25 | Cash | $686 | |
|
Credit card Expenses ($700×2%) |
$14 |
||
| Sales Revenue | $700 | ||
| (To record sale revenue ) |
