### Understanding Accounting TransactionsWhen processing accounting transactions, it's important to accurately record debit and credit entries in the appropriate accounts. Below are examples of such transactions for educational purposes. #### Example Transactions1. **Tony's Restaurant Visa Payment** - Tony's Restaurant accepted a Visa card in payment for a $175 lunch bill. The bank charges a 4% fee. What entry should Tony's make?2. **Larkin Company Accounts Receivable Sale** - Larkin Company sold its accounts receivable of $60,000. What entry should Larkin make, given a service charge of 3% on the amount of receivables sold?#### Journal Entries- **Transaction a**: **Account Titles and Explanation | Debit ($) | Credit ($)** - Accounts Receivable (from Visa) | 168 | - Credit Card Expense | 7 | - Sales Revenue | | 175 *Explanation*: This entry records the Visa card transaction, where $168 is debited to Accounts Receivable (net of the 4% fee of $7), and the Sales Revenue is credited for the full amount of $175.- **Transaction b**: **Account Titles and Explanation | Debit ($) | Credit ($)** - Cash | 58,200 | - Service Charge Expense | 1,800 | - Accounts Receivable | | 60,000 *Explanation*: This entry records the sale of accounts receivable with a 3% service charge. $58,200 is debited to Cash, $1,800 is debited to Service Charge Expense, and $60,000 is credited to Accounts Receivable.### List of Accounts- Accounts Receivable- Credit Card Expense- Sales Revenue- Service Charge Expense- Cash

A Journal is made to record all the business transactions in chronological order. It is the first…

Consider these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually) 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. Larkin Company sold its accounts receivable of $60,000. What entry should Larkin make, given a service charge of 3% on the amount of receivables sold? Account Titles and Explanation Debit Credit

Consider these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually) 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. Larkin Company sold its accounts receivable of $60,000. What entry should Larkin make, given a service charge of 3% on the amount of receivables sold? Account Titles and Explanation Debit 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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