Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either...

60.1K

Verified Solution

Question

Accounting

Mayfair Co. allows select customers to make purchases oncredit. Its other customers can use either of two credit cards:Zisa or Access. Zisa deducts a 6.0% service charge for sales on itscredit card. Access deducts a 5.0% service charge for sales on itscard. Mayfair completes the following transactions in June.
June 4 Sold $600 of merchandise on credit (that had cost $240)to Natara Morris terms n/30.
5 Sold $9,900 of merchandise (that had cost $3,960) tocustomers who used their Zisa cards.
6 Sold $5,734 of merchandise (that had cost $2,294) tocustomers who used their Access cards.
8 Sold $4,350 of merchandise (that had cost $1,740) tocustomers who used their Access cards.
13 Wrote off the account of Abigail McKee against theAllowance for Doubtful Accounts. The $571 balance in McKee’saccount stemmed from a credit sale in October of last year.
18 Received Morris’s check in full payment for the purchase ofJune 4.

Required:
Prepare journal entries to record the preceding transactionsand events. (The company uses the perpetual inventorysystem.)

Answer & Explanation Solved by verified expert

4.0 Ratings (380 Votes)

Solution Journal Entries to record preceding Transaction and events Date Account Title and Explanation Post Ref Debit Credit Jun 4 Accounts receivablesCustomer N 600 Sales 600 To record the credit sales Jun 4 Cost of goods See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member