1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elis [28]
3 years ago
10

Evergreen Company accepted credit card payments in exchange for $50,000 of services provided to customers. The credit card compa

ny charges a 3% service charge. Prepare the journal entry to record this transaction
Business
1 answer:
sasho [114]3 years ago
6 0

Answer:

Debit Cash/Bank   $48,500

Debit Service charge (p/l)   $48,500

Credit Accounts receivable  $50,000

Being entries to account for credit card payment of debt due from customers.

Explanation:

The credit card payment is a form of cash and cash equivalent that may be accepted by a company in place of  debt owed by another company (a customer).

This is usually at a fee and may be done to ease the company's liquidity. The actual receivable will then be collected from the customer by the credit card company. This is a form of debt factoring.

Service charge

= 3% * $50,000

= $1,500

Amount received = $50,000 - $1,500

= $48,500

The accounts to be adjusted include cash/bank account, service charge (p/l) and accounts receivable.

You might be interested in
Branford Inc. reported the following results from the sale of 24,000 units of SR-90:
Liula [17]

Answer:

d. None of the answers is correct

$17,000 increase

Explanation:

As per the given question the solution is provided below:-

For reaching the change in income if the special order is accepted we need to follow some steps which are as follows:-

Step 1

Variable manufacturing cost per unit = Variable manufacturing costs ÷ Sale units

= $240,000 ÷ 24,000

= $10

Step 2

Cost related with special order = Number of units × Variable manufacturing cost per unit

= 3,400 × $10

= $34,000

Step 3

Income from special order = Number of units × Selling price

= 3,400 × $15

= $51,000

Therefore the Change in income if special order is accepted = Income from special order- Cost related with special order

= $51,000 - $34,000

= $17,000 increase

d. None of the answers is correct the right answer is $17,000 increase.

To reach the change in income if special order is accepted we simply put the values into formula.

3 0
3 years ago
Forty Winks Corporation manufactures night stands. The production budget shows that Forty Winks Corporation plans to produce 1 c
Hunter-Best [27]

Answer:

$8,775

Explanation:

Forty Winks Corporation

March Night stand + April Night Stand × direct labour hours × direct labour rate.

$1,600+ $1,100 =$2,700

$2,700×0.25 direct labor hours =$675

$675×labor rate of $ 13.00=$8,775

The total combined direct labor cost that Forty Winks Corporation should budget in March and​ April is $8,775

6 0
3 years ago
Read 2 more answers
Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should
marysya [2.9K]

Answer: Prior period adjustment resulting from the correction of an error.

Explanation:

The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.

In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.

8 0
2 years ago
Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4, 2020. His father paid $44 per share
Marina86 [1]

Answer:

$6,000 LTCG

Explanation:

Calculation to determine the amount and character of the gain or loss that Monte recognizes

Using this formula

Recognized gain or loss =Amount realized -Basis

Let plug in the formula

Recognized gain or loss=(1,000 Shares*$54 per share)-(1,000shares*$48 per share)

Recognized gain or loss=$54,000-$48,000

Recognized gain or loss=$6,000 LTCG

Therefore the amount and character of the gain or loss that Monte recognizes is $6,000 LTCG reason been the any gain Amount on the sales of property that was inherited are often tend to be LTCG

6 0
2 years ago
The projected benefit obligation was $440 million at the beginning of the year. Service cost for the year was $48 million. At th
balu736 [363]

Answer:  $47 million

Explanation:

Pension expense arises as a result of the amounts owed to employees in relation to pension liabilities.

It is calculated by;

= Service Cost + Interest expense - Expected return on plan assets +  Amortization of prior service cost + Amortization of net loss

= 48 + ( 440 * 5%) - 23

= $47 million

7 0
3 years ago
Other questions:
  • Bob deposits $1,500 at the beginning of each quarter for sixteen years in a fund earning a nominal rate of interest of 6% conver
    10·1 answer
  • "If the market price is​ $20, then to maximize profits this firm should produce" A. two units of output. B. zero units of output
    13·1 answer
  • Pam recently was sickened by eating spoiled peanut butter. she successfully sued the manufacturer for her medical bills ($3,700)
    8·1 answer
  • When a grocery store chain adopts a new practice of its competitors by staying open 24 hours a day, requiring employees to work
    14·1 answer
  • G.R. Dry Foods Distributors specializes in the wholesale distribution of dry goods, such as rice and dry beans. The firm’s manag
    5·1 answer
  • Select the best definition for simple interest rates. Group of answer choices A percentage of the principal borrowed Interest th
    14·1 answer
  • On January 15, 2015, Vancey Company paid property taxes on its factory building for the calendar year 2015 in the amount of $960
    12·1 answer
  • + An e-commerce company spends a lot of money on product replacement, as customers often complain about the products they receiv
    12·1 answer
  • Old Doc White advised you to do your homework before applying for a consumer loan. Which of the following is his main piece of a
    5·1 answer
  • Production possibilities curve. the curve of the graph<br><br> is called "The Frontier"
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!