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ratelena [41]
3 years ago
15

A company is recording the disposal of accounts receivable with two different transactions. One transaction affects the balance

of two asset accounts and one stockholders' equity account, whereas the second transaction affects one asset account and two stockholders' equity accounts. Which of the following most accurately describes these transactions?
The first transaction records the sale of accounts receivable to a factor, whereas the second transaction records a sale that was paid using a national credit card.

The journal entry for the sale of receivables to a factor requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Accounts Receivable (asset). Therefore, it affects two asset accounts and one stockholders' equity account. In contrast, the journal entry for a sale paid with a national credit card requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Sales Revenue (stockholders' equity). Therefore, it affects one asset account and two stockholders' equity accounts. A sale made with a store credit card does not dispose of accounts receivable; instead, it increases Accounts Receivable and increases Sales Revenue.
Business
1 answer:
In-s [12.5K]3 years ago
6 0

The following statements more accurately describe the transactions:

- The first transaction records the sale of accounts receivable to a factor, whereas the second transaction records a sale that was paid using a national credit card.

- The journal entry for the sale of receivables to a factor requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Accounts Receivable (asset). Therefore, it affects two asset accounts and one stockholders' equity account. In contrast, the journal entry for a sale paid with a national credit card requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Sales Revenue (stockholders' equity). Therefore, it affects one asset account and two stockholders' equity accounts. A sale made with a store credit card does not dispose of accounts receivable; instead, it increases Accounts Receivable and increases Sales Revenue.

<u>Explanation</u>:

The assets owned by the company are recorded in the form of account known as <u>asset account</u>. Capital expenditures are debited to an asset account, and the expenditure is said to be capitalized. If the owner of the business increases the assets amount, the asset account will also be increased.

<u>Equity account</u> illustrates the financial representation of the ownership of a business. The payment made by the owner to the business or the earnings that are generated by the business are considered as equity. As the equity funds come from different sources, the equity is stored in multiple types of accounts.

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If a policy change causes a Pareto improvement, is the outcome necessarily Pareto efficient if a policy change causes a Pareto improvement, then the outcome is not necessarily Pareto efficient this is because another change in the policy could cause another Pareto improvement.

A Pareto development is a development of a device whilst an alternative in the allocation of goods harms no person and advantages as a minimum one character. Pareto enhancements also are called "no-brainers" and are generally predicted to be rare, due to the plain and effective incentive to make any available Pareto development.

Factors that lie within the PPF display an inefficient or below-usage of resources – this is Pareto inefficient. A Pareto development way that output of both products can increase as we move from inside the PPF to factors at the PPF boundary.

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4 0
1 year ago
The histogram below represents the number of television sets per household for a sample of u.s. households. what is the minimum
ladessa [460]

Answer: 5 Households

Explanation:

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At which inventory level is operations management considered to be doing an excellent job?
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Amanda is kind of an unsecured creditor.

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Your question is incomplete, but most probably your full question was:

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