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Anna11 [10]
3 years ago
8

Calico Corners decides to sell $400,000 of its accounts receivable to Fast Cash Factors Inc. Fast Cash Factors assesses a servic

e charge of 3% of the amount of receivables sold. Prepare the journal entry that Calico Corners makes to record this sale.
Business
1 answer:
Vilka [71]3 years ago
8 0

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr                                $388,000

Service charge expense A/c Dr $12,000

     To Account receivable A/c                  $400,000

(Being sale is recorded)

The service charge is an expense that is why it is debited and it is computed by

=  Sales ×  service charge

= $400,000 × 3%

=  $12,000

Since the sales is made so the company would received the cash that is why we debited the cash account and credited the accounts receivable account

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New investors may want to consider _______ funds, which are mutual funds that invest in one particular kind of stock or a partic
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Answer:

B. index

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As the gross profit is the same for both products It is better to choose Product A because Product Z needs further processing a day , so time can also be the constraint.

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Consumables are goods that are best suited for their end use. In other words, the end-user of consumer goods is the consumer themselves, and capital goods are the goods used to manufacture consumer goods.

Common examples include food, drink, clothing, shoes, and gasoline. Consumer services are usually intangible products or actions that are produced and consumed simultaneously.

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b. Enhance Reinsurance Company was reported to have offered S4.2 million. Use Excel to find the return that the company was looking for.

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