Presented below are two independent situations.
(a) On March 3, Pusan Appliances sells W620,000,000 of its receivables to Universal Factors Inc. Universal Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Pusan Appliances’ books to record the sale of the receivables.
(b) On May 10, Taejeon Company sold merchandise for W3,500,000 and accepted the customer’s America Bank MasterCard. America Bank charges a 5% service charge for credit card sales. Prepare the entry on Taejeon Company’s books to record the sale of merchandise.