Woods CoAccepts the World Express Credit Card from Its Customers

question 29

Essay

Woods Co.accepts the World Express credit card from its customers.World Express charges a 3.5% service fee and pays Woods the amount net of World Express charges once a month.During February,Woods sold $24,000 worth of merchandise to customers using the World Express charge card.On February 28,Woods sent the $24,000 worth of credit card receipts to World Express.On March 4,Woods received cash proceeds from World Express for the February credit sales less the service charge.Prepare the journal entries to record February sales and the March 4 cash receipt.

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Definitions:

Due Diligence Defense

A legal defense used in securities law, indicating that the defendants conducted a thorough investigation and did not find any misrepresentations or omissions.

Prospectus

A formal document that companies must publish when offering their shares to the public, detailing their business and financial status.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Material Information

Any information that could influence an investor's decision to buy or sell securities, including details about a company's financial status, operations, and any legal issues.