Maytair Co. allows seed astomers to make purchases on credit its other a stormer
ID: 2568807 • Letter: M
Question
Maytair Co. allows seed astomers to make purchases on credit its other a stormers can use erer d t o aedit ards Zsa or Ba day zisa deducts a 65% sence charge for sales on its credit card and transfers funds to the bank acoount of Maytair immediately upon recelving the credit card sales data. Barclay deductsa 5 ervice charge and transters the tunds to Maytair within 4 to 8 business days. Maytair barches the Zisa and the Barclay credit card sales daca daily to the card companies. Mayfair compleies the folowing transsctiors in June. June 4 Sold $600 of merchandise (that had cost $300) on credit to Natara Moms 5Sold S7 700 of merchandise (that had cos! S3 850)tocusimers who used her Zsa cards 6 Sold $5610 of merchandise (that had cost $2,805) to customers who used their Barclay cards 8 Sold $4 340 of merchandse (that had cost $2,170) to customers who used their Barclay cards 13 Wrote oft the account of Abigal McKee against the Allowance for Doubtful Accounts The $710 balance in McKee's account stemmed from a credit sale in October of last year 17 Received the transterred funds owed trom Barclay for the June 6 and June&transactions; 18 Received Mormis'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. if no entry is required for a transaction'event, select "No journal entry required" in the first account field.) Journal entry worksheetExplanation / Answer
4-Jun Natara Morris $600 To Sales $600 (Being goods sold to Natara Motors on credit of cost $300) 5-Jun Receivable from Zisa $7,200 Zisa Credit card charges $500 To Sales $7,700 (Being goods sold and the customer used Zisa credit card having charge of 6.5% on sales) 6-Jun Receivable from Barclays $5,301 Barclay Credit card charges $309 To Sales $5,610 (Being goods sold and the customer used Barclay credit card having charge of 5.5% on sales) 8-Jun Receivable from Barclays $4,101 Barclay Credit card charges $239 To Sales $4,340 (Being goods sold and the customer used Barclay credit card having charge of 5.5% on sales) 13-Jun Allowance for doubtful account $710 To Abigal Mckee $710 (Being debtor account written off against the allowance for doubtful debt as it became bad) 17-Jun Bank $9,403 To Receivable from Barclays $9,403 (Being the amount pertaining to customers who used Barclays credit card realised) 18-Jun Bank $600 To Natara Morris $600 (Being cheque received for credit sales done)