Horton Company has the following accounts receivable in its general ledger at July 31: Accounts Receivable $40,000. During August, the following transactions occurred.
Aug. 1 Added 1% finance charges to $20,000 of credit card balances for not paying within the 30 day grace period.
15 Sold $35,000 of accounts receivable to Fast Factors Inc. who charge a 2% commission.
28 Collected $7,000 from Horton credit card customers including $350 of finance charges previously billed.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of finance and service charges.

Question

Quizplus · Accepted Answer

The Answer of Horton Company has the following accounts receivable in its general ledger at July 31: Accounts Receivable $40,000. During August, the following transactions occurred.
Aug. 1 Added 1% finance charges to $20,000 of credit card balances for not paying within the 30 day grace period.
15 Sold $35,000 of accounts receivable to Fast Factors Inc. who charge a 2% commission.
28 Collected $7,000 from Horton credit card customers including $350 of finance charges previously billed.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of finance and service charges.

Horton Company Has the Following Accounts Receivable in Its General