Presented below are two independent transactions. (a) Tonys Restaurant accepted a Visa card in payment of a

Question:

Presented below are two independent transactions.
(a) 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 of $60,000. What entry should Larkin make, given a service charge of 3% on the amount of receivables sold?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...