Twain Company has the following accounts in its general ledger at July 31: Accounts Receivable $40000 and Allowance for Doubtful Accounts $2500. During August the following transactions occurred.
Oct. 15 Sold $16000 of accounts receivable to Nelson Factors Inc. who assesses a 4% finance charge.
25 Made sales of $900 on VISA credit cards. The credit card service charge is 3%.
Instructions
Journalize the transactions.

Question

Quizplus · Accepted Answer

The Answer of Twain Company has the following accounts in its general ledger at July 31: Accounts Receivable $40000 and Allowance for Doubtful Accounts $2500. During August the following transactions occurred.
Oct. 15 Sold $16000 of accounts receivable to Nelson Factors Inc. who assesses a 4% finance charge.
25 Made sales of $900 on VISA credit cards. The credit card service charge is 3%.
Instructions
Journalize the transactions.

Twain Company Has the Following Accounts in Its General Ledger