Reference no: EM132961820

Problem 1: Prepare the proper journal entries for the transactions of Pakistani firm named "Finch company" in General Journal: Mar 1 Sold Rs. 20,000 of merchandise to alpha company terms 2/10, n/30. Mar 11 Received payment in full from alpha company for the balance due on existing accounts receivable Mar 12 Accepted Juno company's 20,000, 6 months, 12% notes for balance due. Mar 13 Made Finch company credit card sales 13,200. Mar 15 Made Visa credit card sales totaling 6700, 3% services fee is charged by visa. Apr 11 Sold accounts receivable of 8000 to Haricot factor. Haricot factor assesses a service charges of 2% of the amount of accounts receivables sold. Apr 13 Received collection of 8200 on Finch co. credit card sales and added finance charges of 1.5% to the remaining balance. May 10 Wrote off as uncollectible 16000 of accounts receivables. Finch uses the percentage of sales basis to estimate the bad debts. June 30 Credit sales recorded during the first 6 months total 2,000,000. The bad debt % is 1% of credit sales. At June 30, the credit balance in allowance account is 3500 before adjustment.