Question 6 of 10The following are two independent situations. (Ignore cost of goods sold entries.)(a)On March 3, Kitselman Appliances sells $750,000of its receivables to Pharoah Inc. Pharoah assesses a finance charge of 3% of theamount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (Credit accounttitles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter o for the amounts.)DateMar. 3DateAccount TitlesMay 10Debit(b)On May 10, Cullumber Company sold merchandise for $7.200 and accepted the customer's America Bank MasterCard. America Bankcharges a2% service charge for credit card sales. Prepare the entry on Cullumber Company's books to record the sale of merchandise.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" forthe account titles and enter O for the amounts.)Account TitlesCreditDebitE ICredit

The account receivable factoring means receiving the cash from third party against the account…

Question 6 of 10 The following are two independent situations. (Ignore cost of goods sold entries.) Date Mar. 3 On March 3, Kitselman Appliances sells $750,000of its receivables to Pharoah Inc. Pharoah assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles Debit III Credit E *** (b) On May 10, Cullumber Company sold merchandise for $7.200 and accepted the customer's America Bank MasterCard. America Bank charges a 2% service charge for credit card sales. Prepare the entry on Cullumber Company's books to record the sale of merchandise. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Question 6 of 10 The following are two independent situations. (Ignore cost of goods sold entries.) Date Mar. 3 On March 3, Kitselman Appliances sells $750,000of its receivables to Pharoah Inc. Pharoah assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles Debit III Credit E *** (b) On May 10, Cullumber Company sold merchandise for $7.200 and accepted the customer's America Bank MasterCard. America Bank charges a 2% service charge for credit card sales. Prepare the entry on Cullumber Company's books to record the sale of merchandise. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

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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. Journalize the following transactions using the allowance method of accounting for uncollectible receivables. April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400. June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder. Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.
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4. On January 1st, 2018, Blue Co. made a $10,000 sale for 1,000 water bottles on account with terms: of 2/15, n/30. If the company uses the net method, which of the following will be included in the Journal entry to record customer payment for all 1,000 water bottles on January 28th, 2018? a) credit Accounts Receivable $10,000 b) credit Sales Discounts Forfelted $200 c) debit Sales Discount $200 d) debit Cash $9,800