Ask Question
BusinessBusiness
23 September, 03:02

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? identify different types of receivables. (lo 1) record basic accounts receivable transactions. (lo 2) prepare entry for allowance method and partial balance sheet. (lo 3, 9) prepare entry for write-off; determine cash realizable value. (lo 3) prepare entries for collection of bad debt write-off. (lo 3) prepare entry using percentage-of-sales method. (lo 3) prepare entry using percentage-of-receivables method. (lo 3) prepare entries to dispose of accounts receivable. (lo 4) 412 8 accounting for receivables (b) larkin company sold its accounts receivable of $60,000. what entry should larkin make, given a service charge of 3% on the amount of receivables sol

+5
Answers (1)
  1. 23 September, 03:16
    0
    1) There are two types of methods:

    immediate payment

    Dr Cash 168

    Dr Credit card fees 7

    Cr Service revenue 175

    or delayed payment

    Dr Accounts receivable 175

    Cr Service revenue 175

    Dr Cash 168

    Dr Credit card fees 7

    Cr Accounts receivable 175

    Credit card companies process payments in two ways: they pay the businesses immediately or they might pay them in 2-3 days after they have finished processing the transaction.

    2b) Larkin company sold its accounts receivable of $60,000.

    Dr Cash 58,200

    Dr Factoring fees 1,800

    Cr Accounts receivable 60,000

    Factoring companies are businesses that purchase accounts receivables from other companies and collect them themselves.

    *There are several parts of this question that do not make sense since there is no information.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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? identify ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Managers rarely have to manage multicultural teams within one organization in one location. a. True b. False
Answers (1)
Sheffield Corp. issued $7080000 of 11%, ten-year convertible bonds on July 1, 2020 at 96.1 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1.
Answers (1)
What does a negative value for unlevered free cash flow imply for the claimants of a firm? Management is doing a bad job The firm must raise capital from the capital markets (e. g., debt, equity), or liquidate internal assets (e. g.
Answers (1)
Lena invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 6% profit. The amount that she invested in Fund B returned a 1% profit.
Answers (1)
What are some advantages of students being exposed to computer software? (as it relates to Accounting)
Answers (1)
New Questions in Business
China has a collectivist culture. how do you believe that this will affect managers in a starbucks store?
Answers (1)
XYZ title, in preparing a title commitment for a transaction set to close on July 1, 2009, comes across a deed from July 1, 1988 that is improperly acknowledged. What notation should they put on the title commitment?
Answers (1)
When a firm in perfect competition has economic profit is equal to zero?
Answers (1)
Workers who receive benefits are often less motivated. True or false.
Answers (1)
Examples of transaction costs include (check all that apply) : A. the cost of the externality. B. the cost of monitoring an agreement. C. the cost of drafting a contract or agreement. D.
Answers (1)
Home » Business » 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? identify different types of receivables. (lo 1) record basic accounts receivable transactions.
Sign Up Forgot Password?