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 6.5% service charge for sales on its credit card. Access deducts a 5.5% service charge for sales on its card. Mayfair completes the following transactions in June.

June		4		Sold $700 of merchandise on credit (that had cost $350) to Natara Morris terms n/30.
		5		Sold $10,000 of merchandise (that had cost $5,000) to customers who used their Zisa cards.
		6		Sold $5,910 of merchandise (that had cost $2,955) to customers who used their Access cards.
		8		Sold $4,990 of merchandise (that had cost $2,495) to customers who used their Access cards.
		13		Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $615 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.)

Answer 1

			(Amount in $ )
Date	General journal		Debit	Credit
Jun-04	Accounts receivable - N morris		700
	TO sales			700
	(Being sale made on credit recoreded)
Jun-04	Cost of goods sold		350
	To Merchandise inventory			350
	(Being cost of goods sold recorded)
Jun-05	Cash		9350
	Credit card expense		650				*650 = (10000*6.5/100)
	To sales			10000
	( To record credit card sales less fees )
Jun-05	Cost of goods sold		5000
	To Merchandise inventory			5000
	(Being cost of goods sold recorded)
Jun-06	Cash		5585
	Credit card expense		325				*325 = (5910*5.5/100)
	TO sales			5910
	( To record credit card sales less fees )
Jun-06	Cost of goods sold		2955
	To Merchandise inventory			2955
	(Being cost of goods sold recorded)
Jun-08	Cash		4716
	Credit card expense		274				*274 = 4990*5.5%
	TO sales			4990
	( To record credit card sales less fees )
Jun-08	Cost of goods sold		2495
	To Merchandise inventory			2495
	(Being cost of goods sold recorded)
Jun-13	Allowance for doubtful accounts		615
	To accounts receivable - McKee			615
	(Being wrote off the account of Mckee as a bad debt)
Jun-18	Cash		700
	TO accounts receivable - N morris			700
	(Being Received Full payment from N morris with in Period )