The Repair Shop provided $618,000 of services to customers during 2012.All customers paid for the services with credit cards.The company submitted the credit card receipts to the credit card company immediately,and the credit card company paid cash in the amount of face value less a 4 percent service charge.
Required:
Record the credit card sales and collection of the receivables in the horizontal statements model,below.Show dollar amounts of increases and decreases.For cash flows,indicate whether the item is an operating activity (OA),investing activity (IA),or financing activity (FA).Use NA to indicate that an element is not affected by an event.

Question

Quizplus · Accepted Answer

The Answer of The Repair Shop provided $618,000 of services to customers during 2012.All customers paid for the services with credit cards.The company submitted the credit card receipts to the credit card company immediately,and the credit card company paid cash in the amount of face value less a 4 percent service charge.
Required:
Record the credit card sales and collection of the receivables in the horizontal statements model,below.Show dollar amounts of increases and decreases.For cash flows,indicate whether the item is an operating activity (OA),investing activity (IA),or financing activity (FA).Use NA to indicate that an element is not affected by an event.

The Repair Shop Provided $618,000 of Services to Customers During