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.

---

Definitions:

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

System

A group of interacting or interrelated entities that form a unified whole, used to analyze or study a specific domain or set of procedures.

Expected Number

The calculated average or mean value of a numeric dataset, predicting the central value around which other values tend to cluster.

Customers In Service

The number of customers currently being served or assisted in a service-based business or setting.