Mayfair Co. allows select customers to make purchases on credit. Its other custo
ID: 2574467 • 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 4.5% service charge for sales on its credit card. Access deducts a 3.5% service charge for sales on its card. Mayfair completes the following transactions in June. une 4 Sold $700 of merchandise on credit (that had cost $280) to Natara Morris 5 Sold $9,500 of merchandise (that had cost $3,800) to customers who used their Zisa cards. 6 sold $5,668 of merchandise (that had cost $2,267) to customers who used their Access cards. 8 sold $4,750 of merchandise (that had cost $1,900) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $432 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 Je 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 1112345678910 Sold $700 of merchandise on credit to Natara Morris. Note: Enter debits before credits. Date General Journal bit Credit June 04 Accounts receivable-N. Morris 700 Sales 700Explanation / Answer
Date Account Title & Explanations Debit ($) Credit ($) 4-Jun Accounts Receivable - N. Morris 700 Sales Revenue 700 (Sales made to Moris recorded) Cost of goods sold 280 Merchandise Inventory 280 (cost of goods sold recorded) 5-Jun Accounts Receivable 9072.5 Credit Card commission 427.5 Sales Revenue 9072.5 (sales through Zisa credit card made) Cost of goods sold 3800 Merchandise Inventory 3800 (cost of goods sold recorded) 6-Jun Accounts Receivable 5469.62 Credit Card commission 198.38 Sales Revenue 5668 (sales through Access credit card made) Cost of goods sold 2267 Merchandise Inventory 2267 (cost of goods sold recorded) 8-Jun Accounts Receivable 4583.75 Credit Card commission 166.25 Sales Revenue 4750 (sales through Access credit card made) Cost of goods sold 1900 Merchandise Inventory 1900 (cost of goods sold recorded) 13-Jun Allowance for doubtful accounts 432 Accounts Receivable - A.Mckee 432 (write off recorded) 18-Jun Cash 700 Accounts Receivable - N. Morris 700 (cash collected from N.Morris)