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 5.5% service charge for sales on its credit card. Access deducts a 4.5% 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. 5 Sold $7,100 of merchandise (that had cost $2,840) to customers who used their Zisa cards. 6 Sold $6,152 of merchandise (that had cost $2,461) to customers who used their Access cards. 8 Sold $4,300 of merchandise (that had cost $1,720) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $739 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s 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.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Sold $600 of merchandise on credit to Natara Morris. 2 Record cost of goods sold, $240 3 Sold $7,100 of merchandise to customers who used their Zisa cards. 4 Record cost of goods sold, $2,840. 5 Sold $6,152 of merchandise to customers who used their Access cards. 6 Record cost of goods sold, $2,461. 7 Sold $4,300 of merchandise to customers who used their Access cards. 8 Record cost of goods sold, $1,720. 9 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $739 balance in McKee’s account stemmed from a credit sale in October of last year. 10 Received Morris's check in full payment for the purchase of June 4.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 4RE: Refer to RE6-3. Assume Long records accounts receivable and sales using the net price method....

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Question

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 5.5% service charge for sales on its credit card. Access deducts a 4.5% 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.
	5	Sold $7,100 of merchandise (that had cost $2,840) to customers who used their Zisa cards.
	6	Sold $6,152 of merchandise (that had cost $2,461) to customers who used their Access cards.
	8	Sold $4,300 of merchandise (that had cost $1,720) to customers who used their Access cards.
	13	Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $739 balance in McKee’s account stemmed from a credit sale in October of last year.
	18	Received Morris’s 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.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1

Sold $600 of merchandise on credit to Natara Morris.
2

Record cost of goods sold, $240
3

Sold $7,100 of merchandise to customers who used their Zisa cards.
4

Record cost of goods sold, $2,840.
5

Sold $6,152 of merchandise to customers who used their Access cards.
6

Record cost of goods sold, $2,461.
7

Sold $4,300 of merchandise to customers who used their Access cards.
8

Record cost of goods sold, $1,720.
9

Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $739 balance in McKee’s account stemmed from a credit sale in October of last year.
10

Received Morris's check in full payment for the purchase of June 4.

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Sold $600 of merchandise on credit to Natara Morris.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
June 04

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