Question

Mayfair Co. completed the following transactions and uses a perpetual inventory system.

June		4		Sold $600 of merchandise on credit (that had cost $240) to Natara Morris, terms n/15.
		5		Sold $9,400 of merchandise (that had cost $3,760) to customers who used their Zisa cards. Zisa charges a 3.5% fee.
		6		Sold $5,764 of merchandise (that had cost $2,306) to customers who used their Access cards. Access charges a 2.5% fee.
		8		Sold $4,990 of merchandise (that had cost $1,996) to customers who used their Access cards. Access charges a 2.5% fee.
		13		Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $547 balance in McKee’s account was from a credit sale last year.
		18		Received Morris’s check in full payment for the June 4 purchase.

Required:
Prepare journal entries to record the preceding transactions and events. (Do not round intermediate calculations.)

Answer 1

Answer
	Date	Account Titles and Explanation	Debit	Credit
1	Jun-04	Accounts Receivable-N. Morris	$        600
		Sales		$        600
2	Jun-04	Cost of goods sold	$        240
		Merchandise Inventory		$        240
3	Jun-05	Cash	$     9,071
		Credit card expense	$        329		9400*3.5%
		Sales		$     9,400
4	Jun-05	Cost of goods sold	$     3,760
		Merchandise Inventory		$     3,760
5	Jun-06	Cash	$     5,620
		Credit card expense	$        144		5764*2.5%
		Sales		$     5,764
6	Jun-06	Cost of goods sold	$     2,306
		Merchandise Inventory		$     2,306
7	Jun-08	Cash	$     4,865
		Credit card expense	$        125		4990*2.5%
		Sales		$     4,990
8	Jun-08	Cost of goods sold	$     1,996
		Merchandise Inventory		$     1,996
9	Jun-13	Allowance for Doubtful accounts	$        547
		Accounts Receivable-A. McKee		$        547
10	Jun-18	Cash	$        500
		Accounts Receivable-N. Morris		$        500