Please help! It would be greatly appreciated! Exercise 8-7 On March 3, Bonita In

Question

Please help! It would be greatly appreciated!

Exercise 8-7 On March 3, Bonita Industries sells $642,600 of its receivables to National Factors Inc. National Factors Inc. assesses a service charge of its receivables to Western Factors Inc. western Factors Inc. assesses a service charge of 6% of the amount of receivables sold. Prepare the entry on Bonita Industries' books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 3 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS

Explanation / Answer

Journal Entry on Bonita Industries' books (Amounts in $)

Date Account Titles and Explanation Debit Credit Mar. 3 Cash (642,600 - 38,556) 604,044 Service charge expense (642,600*6%) 38,556 Accounts receivable 642,600

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