Author Question: If the schedule of accounts receivable total and the Accounts Receivable balance total do not agree, ... (Read 118 times)

elizabeth18 · **on:** Jul 5, 2018

If the schedule of accounts receivable total and the Accounts Receivable balance total do not agree, a correcting entry is made to balance the two totals.
a. True
b. False
Indicate whether the statement is true or false

Question 2

The Magic Cow accepts MasterCard. A customer made a 10,000 purchase using MasterCard. MasterCard charges Magic Cow 4 of sales as a service fee. Prepare the entry to record the sale including account titles and amounts.

Shareholders' equity
Assets Liab. CC Retained earnings

HandsomeMarc · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

False

Answer to Question 2

Shareholders' equity
Assets Liab. CC Retained earnings
+ 9,600 Accounts receivable - Mastercard +10,000 Sales
(400) Credit card expense