Accounting for Receivables

Presented below are two independent situations.
  1. 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.
  2. On May 10, Fillmore Company sold merchandise for $3,000 and accepted the custoemr'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.


Kitselman Appliances
Journal Entry
Fillmore Company
Journal Entry
Are you need any help? Contact Us now.

Latest Articles

« »