60.1K

Verified Solution

Link Copied!

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 6.5% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited Mayfair the Zisa credit card receipts each business day When customers use Access credit cards Mayfair accumulates the receipts for several days before submitting them to Access for payment Access a 6 5% service charge and usually pays within one week of being billed Mayfair completes the following transactions in June (The terms of all credit sales are 2/15 n/30 and all sales are recorded at the gross price ) June Sold $500 of merchandise (that had cost $200) on credit to Natara Morris Sold $6 700 of merchandise (that had cost $2 680) to customers who used their Zisa cards Sold $6.1% of merchandise (that had cost $2 478) to customers who used their Access cards Sold $4 880 of merchandise (that had cost S1 952) to customers who used their Access cards Submitted Access card receipts accumulated since June 6 to the credit card company for payment Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts The $678 balance in McKee s account stemmed from a credit sale in October of last year Received the amount due from Access 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 ) (Round your final answers to the nearest whole dollar. If no entry Is required for a transaction/event. select No journal entry required" in the first account field.)

Answer & Explanation Solved by verified expert

See Answer