Solstice Company determines on October 1 that it cannot collect $63,000 of its accounts receivable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1.

Record the write off an account.

• Record the write off an account.

Date	General Journal	Debit	Credit
Oct 01

Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system).

1. Sold $32,000 of merchandise, which cost $24,600, on Mastercard credit cards. Mastercard charges a 5% fee.
2. Sold $6,200 of merchandise, which cost $3,600, on an assortment of bank credit cards. These cards charge a 4% fee.

1. Sold $32,000 of merchandise on Mastercard credit cards. Mastercard charges a 5% fee.

Transaction	General Journal	Debit	Credit
1-a.

Record the cost of the sale, $24,600.

Transaction	General Journal	Debit	Credit
1-b.

• Sold $6,200 of merchandise on an assortment of bank credit cards. These cards charge a 4% fee.

Transaction	General Journal	Debit	Credit
2-a.

Record the cost of the sale, $3,600.

Transaction	General Journal	Debit	Credit
2-b.