Answer
Journal entry:
March 03 Cash 674,500 dollars
Service charges expense 35,500 dollars
Accounts receivable 710,000 dollars
Work Step by Step
To record the sale of accounts receivable to American Factors Inc. at 5% service charge
Accounting: Tools for Business Decision Making, 5th Edition
by Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E.
Published by
Wiley
ISBN 10:
1118128168
ISBN 13:
978-1-11812-816-9
Chapter 8 - Reporting and Analyzing Receivables - Exercises - Page 432: E8-13
Update this answer!
You can help us out by revising, improving and updating this answer.
Update this answerAfter you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.
