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Mayfair Co. allows select customers to make purchases on credit. Its other custo

ID: 2407297 • Letter: M

Question

Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access, Zisa deducts a 55% service charge for sales on its credit card. Access deducts a 4.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $780 of merchandise on credit (that had cost $280) to Natara Morris. 5 Sold $8,680 of merchandise (that had cost $3,440) to customers who used their Zisa cards. 6 Sold $5,998 of merchandise (that had cost $2,399) to customers who used their Access cards. 8 Sold $4, 648 of merchandise (that had cost $1,856) to customers who used their Access cards 13 Wrote off the account of Abigail Mckee against the Allowance for Doubtful Accounts. The $360 balance in Mckee's account stemmed from a credit sale in October of last year. 18 Received Morris's check in full payment for the purchase of June 4. Required Prepare journal entries to record the preceding transactions and events. (The company uses the perpetual inventory system) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Sold s700 of merchandise on credit to Natara Morris. Prev 10f 4??? Next > e to search

Explanation / Answer

june 4 Debit- Accounts receivable $700, credit- sales $700.
debit- cost of goods sold $280, credit- merchandise inv $280.

june 5   debit- cash $, credit card expense $. credit- sales $.
debit- cost of goods sold $, credit- merchandise inv $