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.

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Definitions:

Abyssal Zone

A deep-sea environment located at depths of 4,000 to 6,000 meters, characterized by high pressure, low temperatures, and complete darkness.

Benthic Zone

The ecological region at the lowest level of a body of water such as an ocean or a lake, including the sediment surface and sub-surface layers.

Littoral Zone

The shallow nearshore area of a body of water, where sunlight can reach the bottom, supporting diverse aquatic plants and animals.

Limnetic Zone

The open surface waters in a freshwater habitat, away from the shore, where there is enough light penetration to support photosynthesis.