4. White Company allows customers to make purchases on credit. The terms of all credit sales are 2/10, n/30, and all sales are recorded at the gross price. Other customers can use a bank credit card where the bank deducts a 4% service charge for credit card sales and credits the bank account of White immediately when credit card receipts are deposited. White uses the perpetual inventory method. Prepare journal entries to record the following selected transactions and events. |June 4Sold $12,000 of merchandise (cost $7,000) on credit to Grant. Sold $17,000 of merchandise (cost $9,350) to customers who used a bank credit card, receipts were processed and deposited the same day. Sold $8,500 of merchandise (cost $4,500) on credit to Emma Company. Accepted a $6,700, 45-day, 6% note dated this day in granting Cory Tam a time extension on his past-due account receivable Received Grant's check in full payment of the purchase on June 4. Wrote off the account of Z. Westmore against the Allowance for Doubtful Accounts. The $1,580 balance stemmed from a credit sale in 15 January. |Accepted a $6,240, 30-day, 10% note dates this day in granting F. 20 Potter a time extension on his past-due account receivable. July 17 Received the amount previously written-off from Z. Westmore. 20 F. Potter dishonored his note when presented for payment. 125 Received payment of principal plus interest from Cory Tam