Horton Company Has the Following Accounts Receivable in Its General

question 228

Essay

Horton Company has the following accounts receivable in its general ledger at July 31: Accounts Receivable $40,000. During August, the following transactions occurred.
Aug. 1 Added 1% finance charges to $20,000 of credit card balances for not paying within the 30 day grace period.
15 Sold $35,000 of accounts receivable to Fast Factors Inc. who charge a 2% commission.
28 Collected $7,000 from Horton credit card customers including $350 of finance charges previously billed.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of finance and service charges.