a) Boston Computers factors $850,000 of receivables to Safety Factors, Inc. Safety Factors assesses a 3.5% service
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Question:
a) Boston Computers factors $850,000 of receivables to Safety Factors, Inc. Safety Factors assesses a 3.5% service charge on the amount of receivables sold.
b) Limeade Boutique accepted a Visa card for a $750 purchase. Visa charges a 2% service fee.
Requirement.
a) Prepare the journal entry Boston Computers would make for the factoring of the receivables.
b) Prepare the journal entry that Limeade Boutique would make to record the transaction.
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
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