Lynn Company has accounts receivable of $54000 in its general ledger at July 31: During August the following transactions occurred.
Aug. 1 Added 1% finance charges to $15000 of credit card balances for not paying within the 30 day grace period.
15 Sold $28000 of accounts receivable to Coal Factors Inc. who charge a 3% commission.
28 Collected $6000 from Lynn credit card customers including $300 of finance charges previously billed.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of interest revenue and service charges.

Question

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The Answer of Lynn Company has accounts receivable of $54000 in its general ledger at July 31: During August the following transactions occurred.
Aug. 1 Added 1% finance charges to $15000 of credit card balances for not paying within the 30 day grace period.
15 Sold $28000 of accounts receivable to Coal Factors Inc. who charge a 3% commission.
28 Collected $6000 from Lynn credit card customers including $300 of finance charges previously billed.
Instructions
(a) Journalize the transactions.
(b) Indicate the statement presentation of interest revenue and service charges.

Lynn Company Has Accounts Receivable of $54000 in Its General