Listed Below Are Two Independent Situations Involving the Disposition of Receivables

question 267

Essay

Listed below are two independent situations involving the disposition of receivables.
1. Fultz Company sells $250,000 of its receivables to Quick Factors, Inc. Quick Factors assesses a finance charge of 2% of the amount of receivables sold.
Instructions
Prepare the journal entry to record the sale of the receivables on Fultz Company's books.
2. A restaurant is the site for a large company party. The bill totals $4,000 and is charged by the patron on a Visa credit card.
Instructions
Assume a 3% service fee is charged by Visa. Record the entry for the transaction on the restaurant's books.

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Definitions:

Private Trial

An ADR method in which a referee is selected and paid by the disputing parties to offer a legally binding judgment in a dispute.

"Rent-a-Judge"

A private adjudication service where parties in a dispute pay for a retired judge or private arbitrator to resolve their case outside of the public court system.

Dispute Resolution

The procedure for resolving disagreements or conflicts between parties, which can include negotiation, mediation, or arbitration.

Mediation

A form of dispute resolution where a neutral third party (mediator) helps the disputing parties come to a mutually acceptable agreement.