Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)(a) Pearl Industries accepted a Visa card in payment of a $1,100 lunch bill. The bank charges a 4% fee. What entry should Pearl Industries make?(b) Whispering Winds Corp. sold its accounts receivable of $64,900. What entry should Whispering Winds Corp. make, given a service charge of 4% on the amount of receivables sold?

In the above journal entry, cash and service charges is being debited. The reason being, cash is…

Answered: Consider these transactions: (Credit…

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

(a)		Pearl Industries accepted a Visa card in payment of a $1,100 lunch bill. The bank charges a 4% fee. What entry should Pearl Industries make?
(b)		Whispering Winds Corp. sold its accounts receivable of $64,900. What entry should Whispering Winds Corp. make, given a service charge of 4% on the amount of receivables sold?

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