Norton Company has accounts receivable of $40,000 in its general ledger at July 31: During August, the following transactions occurred.
Aug. 1 Added 1% finance charges to $13,000 of credit card balances for not paying within the 30 day grace period.
15 Sold $21,000 of accounts receivable to Iron Factors Inc. who charge a 4% commission.
28 Collected $8,000 from Norton credit card customers including $400 of finance charges previously billed.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of finance and service charges.

Question

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The Answer of Norton Company has accounts receivable of $40,000 in its general ledger at July 31: During August, the following transactions occurred.
Aug. 1 Added 1% finance charges to $13,000 of credit card balances for not paying within the 30 day grace period.
15 Sold $21,000 of accounts receivable to Iron Factors Inc. who charge a 4% commission.
28 Collected $8,000 from Norton credit card customers including $400 of finance charges previously billed.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of finance and service charges.

Norton Company Has Accounts Receivable of $40,000 in Its General