Rainey Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Allowance for Doubtful Accounts $2,500. During August, the following transactions occurred.
Oct. 15 Sold $12,000 of accounts receivable to Good Factors, Inc. who assesses a 3% finance charge.
25 Made sales of $700 on VISA credit cards. The credit card service charge is 2%.
Instructions
Journalize the transactions.

Question

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The Answer of Rainey Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Allowance for Doubtful Accounts $2,500. During August, the following transactions occurred.
Oct. 15 Sold $12,000 of accounts receivable to Good Factors, Inc. who assesses a 3% finance charge.
25 Made sales of $700 on VISA credit cards. The credit card service charge is 2%.
Instructions
Journalize the transactions.

Rainey Company Has the Following Accounts in Its General Ledger