Shafer Company Has the Following Accounts in Its General Ledger

question 256

Essay

Shafer Company has the following accounts in its general ledger at July 31: Accounts Receivable $49,000 and Allowance for Doubtful Accounts $3,400. During August, the following transactions occurred.
Aug. 15 Sold $30,000 of accounts receivable to More Factors, Inc. who assesses a 2% finance charge.
25 Made sales of $2,500 on Visa credit cards. The credit card service charge is 3%.
28 Made sales of $4,000 on Shafer credit cards.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of service charges.

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Definitions:

Self-mutilation

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A detailed, personalized program designed by healthcare professionals to treat a patient's disorder or disease.

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A mental health disorder characterized by unstable moods, behaviors, and relationships.

Dialectical Behavior Therapy

A comprehensive cognitive-behavioral treatment that emphasizes individual psychotherapy and group skills training classes to help people manage emotional instability and interpersonal difficulties.