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Business, 13.02.2020 17:46, magicallyhello
Ultra Day Spa provided $120,000 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 5 percent service charge.
Required:
a. Show the credit card sales and the subsequent collection of accounts receivable in a horizontal statements model. In the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA).
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