Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) Ayayai Corp. accepted a Visa card in payment of a $2,400 lunch bill. The bank charges a 4% fee. What entry should Ayayai Corp. make? (b) Splish Brothers Inc. sold its accounts receivable of $59,400. What entry should Splish Brothers Inc. make, given a service charge of 4% on the amount of receivables sold?

Question

Anthony Johns

Business

3 January, 10:13

Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) Ayayai Corp. accepted a Visa card in payment of a $2,400 lunch bill. The bank charges a 4% fee. What entry should Ayayai Corp. make? (b) Splish Brothers Inc. sold its accounts receivable of $59,400. What entry should Splish Brothers Inc. make, given a service charge of 4% on the amount of receivables sold?

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Answers (1)

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Yusuf Hanson · Answer 1

Answer and Explanation:

No. Account titles and explanation Debit Credit

(a) Cash $2,304

Service Charge Expense ($2,400 * 4%) $96

Sales Revenue $2,400

No. Account titles and explanation Debit Credit

(b) Cash $57,024

Service Charge Expense ($59,400 * 4%) $2,376

Accounts Receivable $59,400