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.

June		4		Sold $600 of merchandise on credit (that had cost $300) to Natara Morris terms n/30.
		5		Sold $6,200 of merchandise (that had cost $3,100) to customers who used their Zisa cards.
		6		Sold $5,786 of merchandise (that had cost $2,893) to customers who used their Access cards.
		8		Sold $4,930 of merchandise (that had cost $2,465) to customers who used their Access cards.
		13		Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $549 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 inventory system.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)

No	Date	General Journal	Debit	Credit

Answer 1

Journal entries

Date	account and explanation	debit	credit
June 4	Account receivable	600
	Sales revenue		600
	(To record sales)
	Cost of goods sold	300
	Merchandise inventory		300
	(To record cost of goods sold)
June 5	Cash (6200*97%)	6014
	Credit card expense	186
	Sales revenue		6200
	(To record sales)
	Cost of goods sold	3100
	Merchandise inventory		3100
	(To record cost of goods sold)
June 6	Cash (5786*98%)	5670
	Credit card expense	116
	Sales revenue		5786
	(To record sales)
	Cost of goods sold	2893
	Merchandise inventory		2893
	(To record cost of goods sold)
June 8	Cash (4930*98%)	4831
	Credit card expense	99
	Sales revenue		4930
	(To record sales)
	Cost of goods sold	2465
	Merchandise inventory		2465
	(To record cost of goods sold)
June 13	Allowance for doubtful accounts	549
	Account receivable		549
	(To record write off)
June 18	Cash	600
	Account receivable		600
	(to record collection)