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14 May, 00:04

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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  1. 14 May, 03:02
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    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
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