Able Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Commerce Bank or Aztec. Commerce Bank deducts a 3% service charge for sales on its credit card and immediately credits the bank account of Able when credit card receipts are de¬ posited. Able deposits the Commerce Bank credit card receipts each business day. When customers use the Aztec card, Able accumulates the receipts for several days and then submits them to Aztec for payment. Aztec deducts a 2% service charge and usually pays within one week of being billed. Able completed the following transactions in August (terms of all credit sales are 2/10, n/30; and all sales are recorded at the gross price).

Required Prepare journal entries to record the preceding transactions and events. (The company uses the per¬ petual inventory system.)

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Aug. 4 Sold $2,780 of merchandise (that had cost $1,750) on credit to Stacy Dalton. 10 Sold merchandise for $3,248 (that had cost $2,456) to customers who used their Commerce Bank credit cards. 11 Sold merchandise for $1,575 (that had cost $1,150) to customers who used their Aztec cards. 14 Received Dalton's check paying for the purchase of August 4. 15 Sold merchandise for $2,960 (that had cost $1,758) to customers who used their Aztec cards. 18 Submitted Aztec card receipts accumulated since August 11 to the credit card company for payment. 22 Wrote off the account of Ness City against the Allowance for Doubtful Accounts. The $398 balance in Ness City's account stemmed from a credit sale in November of last year. 25 Received the amount due from Aztec.