Norton Company Has Accounts Receivable of $40,000 in Its General

question 84

Essay

Norton Company has accounts receivable of $40,000 in its general ledger at July 31: During August, the following transactions occurred.
Aug. 1 Added 1% finance charges to $13,000 of credit card balances for not paying within the 30 day grace period.
15 Sold $21,000 of accounts receivable to Iron Factors Inc. who charge a 4% commission.
28 Collected $8,000 from Norton credit card customers including $400 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:

Freedom Schools

Free, temporary, alternative schools for African Americans, mostly in the South, which were part of the Civil Rights Movement during the 1960s, aimed at empowering black communities through education.

Freedom Summer

Freedom Summer was a 1964 voter registration drive aimed at dramatically increasing voter registration in Mississippi, a key part of the larger Civil Rights Movement, noted for its grassroots activism and the significant violence it faced.

Morgan v. Commonwealth

A legal case wherein Daniel Morgan, a black man, challenged Virginia’s racial integrity laws, focusing on issues of race and legal rights in the early 19th century.

Congress of Racial Equality

An African-American civil rights organization in the United States that played a pivotal role in the fight against segregation and discrimination in the 1940s to 1960s.