Brief Exercise 8-07Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)(a) Blossom Company accepted a Visa card in payment of a $100 lunch bill. The bank charges a 4% fee. What entry should Blossom make?(b) Kingbird, Inc. sold its accounts receivable of $59,200. What entry should Kingbird make, given a service charge of 4% on the amount of receivables sold?No.Account Titles and ExplanationDebitCredit(a)enter an account title to record transaction A enter a debit amount enter a credit amount enter an account title to record transaction A enter a debit amount enter a credit amount enter an account title to record transaction A enter a debit amount enter a credit amount (b)enter an account title to record transaction B enter a debit amount enter a credit amount enter an account title to record transaction B enter a debit amount enter a credit amount enter an account title to record transaction B enter a debit amount enter a credit amount

(a)Prepare journal entry in the books of Blossom Company:

Answered: Brief Exercise 8-07 Consider these…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Brief Exercise 8-07

Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)		Blossom Company accepted a Visa card in payment of a $100 lunch bill. The bank charges a 4% fee. What entry should Blossom make?
(b)		Kingbird, Inc. sold its accounts receivable of $59,200. What entry should Kingbird make, given a service charge of 4% on the amount of receivables sold?

No.	Account Titles and Explanation	Debit	Credit
(a)	enter an account title to record transaction A	enter a debit amount	enter a credit amount
	enter an account title to record transaction A	enter a debit amount	enter a credit amount
	enter an account title to record transaction A	enter a debit amount	enter a credit amount
(b)	enter an account title to record transaction B	enter a debit amount	enter a credit amount
	enter an account title to record transaction B	enter a debit amount	enter a credit amount
	enter an account title to record transaction B	enter a debit amount	enter a credit amount

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