Check my work Mayfair Co. allows select customers to make purchases on credit. I
ID: 2572002 • Letter: C
Question
Check my work 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 4.5% service charge for sales on its credit card. Access deducts a 3.5% service charge for sales on its card. Mayfalr completes the following transactions in June. June 4 Sold $800 of merchandise on credit (that had cost $400) to Natara Morris s Sold $6,200 of merchandise (that had coat $3,100) to customers who used their zisa carda. 6 Sold $6,170 of merchandise (that had cost $3,085) to customers who used their Access carda. 8 Sold $4,950 of merchandise (that had cost $2,475) to customers who used their Accesa carda. 13 Wrote off the account of Abigail Mckee againat the A 11owance for Doubtful Accounts. The $406 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 inven no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) tory ystem.) (If Journal entry worksheet 9 Prev 1of 1 Next aExplanation / Answer
Required journal entries are as prepared below:
Date Particulars L.F Debit Credit Jun-04 Account Receivable-Natara 800 sales 800 (For goods sold on account) Cost of goods sold 400 Inventory 400 (for cost of goods sold recorded) Jun-05 Account Receivable 5,921 Bank Service charges (4.5% of 6,200) 279 sales 5921 (For goods sold on account) Cost of goods sold 3,100 Inventory 3100 (for cost of goods sold recorded) Jun-06 Account Receivable 5,984 Bank Service charges (3.5% of 6,170) 216 sales 6,170 (For goods sold on account) Cost of goods sold 3,085 Inventory 3085 (for cost of goods sold recorded) Jun-08 Account Receivable 4,777 Bank Service charges (3.5% of 4,950) 173 sales 4,950 (For goods sold on account) Cost of goods sold 2,475 Inventory 2475 (for cost of goods sold recorded) Jun-13 Allowance for doubtful accounts 406 Account Receivable- McKee 406 (for account wrote off) Jun-18 Cash 800 Account receivable-Natara 800 (For cash received)