Listed below are two independent situations involving the disposition of receivables.
1. Fultz Company sells $250,000 of its receivables to Quick Factors, Inc. Quick Factors assesses a finance charge of 2% of the amount of receivables sold.
Instructions
Prepare the journal entry to record the sale of the receivables on Fultz Company's books.
2. A restaurant is the site for a large company party. The bill totals $4,000 and is charged by the patron on a Visa credit card.
Instructions
Assume a 3% service fee is charged by Visa. Record the entry for the transaction on the restaurant's books.

Question

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The Answer of Listed below are two independent situations involving the disposition of receivables.
1. Fultz Company sells $250,000 of its receivables to Quick Factors, Inc. Quick Factors assesses a finance charge of 2% of the amount of receivables sold.
Instructions
Prepare the journal entry to record the sale of the receivables on Fultz Company's books.
2. A restaurant is the site for a large company party. The bill totals $4,000 and is charged by the patron on a Visa credit card.
Instructions
Assume a 3% service fee is charged by Visa. Record the entry for the transaction on the restaurant's books.

Listed Below Are Two Independent Situations Involving the Disposition of Receivables