Horton Company Has the Following Accounts Receivable in Its General

question 37

Essay

Horton Company has the following accounts receivable in its general ledger at July 31: Accounts Receivable $32,000. During August, the following transactions occurred.
Aug. 1 Added 1% finance charges to $12,000 of credit card balances for not paying within the 30 day grace period.
15 Sold $20,000 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:

Social Rank

A hierarchical position within a society based on factors like wealth, occupation, education, and lineage.

Caste System

A traditional social stratification system observed within certain cultures, notably in India, defined by hereditary classes.

Constitutionally Abolished

The formal removal of laws or practices through amendments to a constitution, making them legally invalid.

Social Mobility

An upward or downward change in one's social class position in a stratified society.