Exercise 8-7 Presented below are two independent situations. On March 3, K seman

Question

Exercise 8-7 Presented below are two independent situations. On March 3, K seman Appliances se s $650 000 of its recevables o Eray Factors nc. Er a Factors assesses a nance charge of % of h amount of ce ables i Pr are eenty on Kitselman Appliances' books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Credit Mar. 3 On May 10, Fillmore Company sold merchandise for $3,000 and accepted the customer'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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit May 10

Explanation / Answer

Ans :

(a)

(b)

accounts title Debit ($) Credit ($) calculation cash 630,500 $ 650,000*97% service charge expenses 19,500 $ 650,000*3% accounts receivable 650,000

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