Problem 7-1A Sales on account and credit card sales LO C1 Mayfair Co. allows sel
ID: 2545340 • Letter: P
Question
Problem 7-1A Sales on account and credit card sales LO C1 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 6.0% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 5.0% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June. (The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.) Sold $600 of merchandise (that had cost $240) on credit to Natara Morris June 4 5 Sold $7,700 of merchandise (that had cost $3,080) to customers 6 8 Sold $4,540 of merchandise (that had cost $1,816) to customers 10 Submitted Access card receipts accumulated since June 6 to the 13 Wrote off the account of Abigail McKee against the Allowance for who used their Zisa cards Sold $6,100 of merchandise (that had cost $2,440) to customers who used their Access cards. who used their Access cards. credit card company for payment. Doubtful Accounts. The $668 balance in McKee's account stemmed from a credit sale in October of last year 17Received the amount due from Access 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.) (Round your final answers to the nearest whole dollar. no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8.. 12 Sold $600 of merchandise on credit to Natara Morris Note: Enter debits before credits General Journal Debit Credit June 04 Record entry Clear entry View general journalExplanation / Answer
Date
General Journal
Debit
credit
Jun-04
Accounts receivables - N. Morris
600
Sales
600
(Being goods sold on credit to N.Morris)
Jun-04
Cost of goods sold
240
Merchandise inventory
240
(Record of cost of goods sold)
Jun-05
Cash
7238
Credit card expense (7700*6%)
462
Sales
7700
(sold 6100 to customers who used their Zisa cards)
Jun-05
Cost of goods sold
3080
Merchandise inventory
2240
Jun-06
Accounts receivables - Acess cards
5734
Credit card expense (6100*6%)
366
Sales
6100
(Sold merchandise to customers who used their Acess cards)
Jun-06
Cost of goods sold
2440
Merchandise inventory
2440
Jun-08
Accounts receivables - Acess cards
4313
Credit card expense (4540*5%)
227
Sales
4540
(Sold merchandise to customers who used their Acess cards)
Cost of goods sold
1816
Merchandise inventory
1816
Jun-10
No journal entry
Jun-13
Allowance for Doubtful debts
668
Accounts receivable - A MC kee
668
(wrote of account of Abiagail mc kee against allowance of doubtful accounts)
Jun-17
Cash (5734+4313)
10047
Accounts receivable- Acess
10047
(Received the amount due fromAcess)
Jun-18
Cash
588
sales discounts (600*2%)
12
Accounts receivable - N.Morris
600
(received full Payment from N.morris)
Date
General Journal
Debit
credit
Jun-04
Accounts receivables - N. Morris
600
Sales
600
(Being goods sold on credit to N.Morris)
Jun-04
Cost of goods sold
240
Merchandise inventory
240
(Record of cost of goods sold)
Jun-05
Cash
7238
Credit card expense (7700*6%)
462
Sales
7700
(sold 6100 to customers who used their Zisa cards)
Jun-05
Cost of goods sold
3080
Merchandise inventory
2240
Jun-06
Accounts receivables - Acess cards
5734
Credit card expense (6100*6%)
366
Sales
6100
(Sold merchandise to customers who used their Acess cards)
Jun-06
Cost of goods sold
2440
Merchandise inventory
2440
Jun-08
Accounts receivables - Acess cards
4313
Credit card expense (4540*5%)
227
Sales
4540
(Sold merchandise to customers who used their Acess cards)
Cost of goods sold
1816
Merchandise inventory
1816
Jun-10
No journal entry
Jun-13
Allowance for Doubtful debts
668
Accounts receivable - A MC kee
668
(wrote of account of Abiagail mc kee against allowance of doubtful accounts)
Jun-17
Cash (5734+4313)
10047
Accounts receivable- Acess
10047
(Received the amount due fromAcess)
Jun-18
Cash
588
sales discounts (600*2%)
12
Accounts receivable - N.Morris
600
(received full Payment from N.morris)