Listed Below Are Two Independent Situations Involving the Disposition of Receivables

Essay

Listed below are two independent situations involving the disposition of receivables.
1. Morales Company sells $320000 of its receivables to Instant Factors Inc. Instant Factors assesses a finance charge of 3% of the amount of receivables sold.
Instructions
Prepare the journal entry to record the sale of the receivables on Morales Company's books.
2. A restaurant is the site for a large company party. The bill totals $3400 and is charged by the patron on a Visa credit card.
Instructions
Assume a 3% service fee is charged by Visa. Record the entry for the transaction on the restaurant's books.