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 5.0% service charge for sales on its credit card. Access deducts a 4.0% 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.
		5		Sold $8,600 of merchandise (that had cost $3,440) to customers who used their Zisa cards.
		6		Sold $5,802 of merchandise (that had cost $2,321) to customers who used their Access cards.
		8		Sold $4,500 of merchandise (that had cost $1,800) to customers who used their Access cards.
		13		Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $405 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.)

Journal 1 (June 4): Sold $600 of merchandise on credit to Natara Morris.

Journal 2 (June 4): Record cost of goods sold, $240

Journal 3 (June 5): Sold $8,600 of merchandise to customers who used their Zisa cards.

Journal 4 (June 5): Record cost of goods sold, $3,440.

Journal 5 (June 6): Sold $5,802 of merchandise to customers who used their Access cards.

Journal 6 (June 6): Record cost of goods sold, $2,321.

Journal 7 (June 8): Sold $4,500 of merchandise to customers who used their Access cards.

Journal 8 (June 8): Record cost of goods sold, $1,800.

Journal 9 (June 13): Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $405 balance in McKee’s account stemmed from a credit sale in October of last year.

Journal 10 (June 18): Received Morris's check in full payment for the purchase of June 4.

Journal entry worksheet 2 3 4 5 6 7 8 9 10 > Sold $600 of merchandise on credit to Natara Morris. Note: Enter debits before credits. General Journal Debit Credit Date June 04 Record entry Clear entry View general journal

Answer 1

Date	General Journal	Debit	Credit
04-Jun	Accounts receivable—Natara Morris	600
	Sales		600
04-Jun	Cost of goods sold	240
	Merchandise inventory		240
05-Jun	Cash	8,170
	Credit card expense (8,600x5.0%)	430
	Sales		8,600
05-Jun	Cost of goods sold	3,440
	Merchandise inventory		3,440
06-Jun	Cash	5,570
	Credit card expense (5,802x4.0%)	232.08
	Sales		5,802
06-Jun	Cost of goods sold	2,321
	Merchandise inventory		2,321
08-Jun	Cash	4,320
	Credit card expense (4,500 x 4.0%)	180
	Sales		4,500
08-Jun	Cost of goods sold	1,800
	Merchandise inventory		1,800
13-Jun	Allowance for doubtful accounts	405
	Accounts receivable—Abifail McKee		405
18-Jun	Cash	600
	Accounts receivable—Natara Morris		600