Listed Below Are Two Independent Situations Involving the Disposition of Receivables

question 108

Essay

Listed below are two independent situations involving the disposition of receivables.
1. Morales Company sells $320000 of its receivables to Instant Factors Inc. Instant Factors assesses a finance charge of 3% of the amount of receivables sold.
Instructions
Prepare the journal entry to record the sale of the receivables on Morales Company's books.
2. A restaurant is the site for a large company party. The bill totals $3400 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:

Dry Run

A rehearsal or practice session undertaken before an actual event, to test processes or operations.

Killing

The act of causing death intentionally or due to neglect.

Continuum

Refers to a continuous sequence in which adjacent elements are not perceptibly different from each other, although the extremes are quite distinct.

Rehearse

The act of practicing or preparing for a performance or event by repeating actions or reviewing content.