Mayfair Co. allows select customers to make purchases on credit. Its other custo
ID: 2554674 • 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 3.0% service charge for sales on its credit card. Access deducts a 2.0% service charge for sales on its card. Mayfair completes the following transactions in June 2.5 points June 4 Sold $800 of merchandise on credit (that had cost $320) to Natara Norris. 5 Sold $9,700 of merchandise (that had cost $3,880) to customers who used their zisa cards. 6 Sold $6,066 of nerchandise (that had cost $2,426) to customers who used their Access cards. 8 Sold $4,520 of merchandise (that had cost $1,808) to customers who used their Access cards. 13 Wrote off the account of Abigail Mckee against the Allovance for Doubtful Accounts. The $473 balance in McKee's account stemed from a credit sale in October of last year 18 Received Morris's check in full payment for the purchase of June 4. eBook 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.) PrintExplanation / Answer
Journal Entries Sr. No. Account Title and explanation Debit Credit June, 04 Nataria Morris $ 800 To Sales $ 800 (to Record the sales on credit) June, 04 Cost of Goods sold $ 320 To Merchandise $ 320 (Cost of goods sold is transferred to inventory) June, 05 Cash (9700 X 97% ) $ 9,409 Credit Card Charges(9700 X 3% ) $ 291 To Sales $ 9,700 (to Record the sales on credit card) June, 05 Cost of Goods sold $ 3,880 To Merchandise $ 3,880 (Cost of goods sold is transferred to inventory) Cash (98% X 6,066 ) $ 5,944.68 June, 06 Credit Card Charges( 2% of Sales) $ 121.32 To Sales $ 6,066 (to Record the sales on credit card) June, 06 Cost of Goods sold $ 2,426 To Merchandise $ 2,426 (Cost of goods sold is transferred to inventory) June, 08 Cash (98% X 4520 ) $ 4,429.60 Credit Card Charges( 2% of Sales) $ 90.40 To Sales $ 4,520 (to Record the sales on credit card) June, 08 Cost of Goods sold $ 1,808 To Merchandise $ 1,808 (Cost of goods sold is transferred to inventory) June, 13 Bad Debts Expenses $ 473 To Allowance for Doubtful Account $ 473 (To record the bad debts allowance) June, 18 Cash $ 800 To Allowance for Doubtfuls Debts $ 800 (Collected against credit sales)