rief Exercise 8-7 resented below are two independent transactions. (Credit accou

Q: rief Exercise 8-7 resented below are two independent transactions. (Credit accou

Answer: Transaction Description Debit $ Credit $ 1 Cash (175-7) 168 Bank charges expanses(175*4%) 7 Sales 175 2 Cash (60,000-1800) 58200 Service shares expanses (60,000*3%) 1800 Account receivable 60,000 Transaction Description Debit $ Credit $ 1 Cash (175-7) 168 Bank charges expanses(175*4%) 7 Sales 175 2 Cash (60,000-1800) 58200 Service shares expanses (60,000*3%) 1800 Account receivable 60,000

ID: 2541220 • Letter: R

Question

rief Exercise 8-7 resented below are two independent transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually a) Tony's Restaurant accepted a Visa card in payment of a $175 lunch bill. The bank charges a 4% fee. What entry should Tony's make? b Lark Company sold its accounts recevable of $60,000 what entry should Lar an make, given a service charge of 3% on the amount of recen ables sold? Account Titles and Explanation Debit Credit Click if you would like to show work for this question: OpenShamwork

Explanation / Answer

Answer:

Transaction

Description

Debit $

Credit $

Cash (175-7)

168

Bank charges expanses(175*4%)

Sales

175

Cash (60,000-1800)

58200

Service shares expanses (60,000*3%)

1800

Account receivable

60,000