Concept explainers
Credit card sales
Credit card is an electronic card, which allows the credit card holders to buy something on credit at convenience, and without paying immediate cash.
Businesses allow customers to buy its products through bank credit cards, such sales are termed as credit card sales. For such convenience, bank charges some percentage as service charge expense on the total value of goods, or services purchased on credit.
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
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Chapter 8 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
- Accounting?arrow_forwardFallon Manufacturing Company measures its activity in terms of machine hours. Last month, the budgeted level of activity was 2,300 machine hours and the actual level of activity was 2,450 machine hours. The cost formula for maintenance expenses is $4.25 per machine hour plus $18,500 per month. The actual maintenance expense was $29,600. Last month, the spending variance for maintenance expenses was _.arrow_forwardCan you solve this financial accounting problem with appropriate steps and explanations?arrow_forward
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College