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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
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 6.0% service charge for sales on its credit card. Access deducts a 5.0% 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 $240) to Natara Morris terms n/30.
5 Sold $9,900 of merchandise (that had cost $3,960) to customers who used their Zisa cards.
6 Sold $5,734 of merchandise (that had cost $2,294) to customers who used their Access cards.
8 Sold $4,350 of merchandise (that had cost $1,740) to customers who used their Access cards.
13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $571 balance in McKees account stemmed from a credit sale in October of last year.
18 Received Morriss 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.)
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