Mayfair Co. allows select customers to make purchases oncredit. Its other customers can use either of two credit cards:Zisa or Access. Zisa deducts a 6.0% service charge for sales on itscredit card. Access deducts a 5.0% service charge for sales on itscard. Mayfair completes the following transactions in June.
June 4 Sold $600 of merchandise on credit (that had cost $240)to Natara Morris terms n/30.
5 Sold $9,900 of merchandise (that had cost $3,960) tocustomers who used their Zisa cards.
6 Sold $5,734 of merchandise (that had cost $2,294) tocustomers who used their Access cards.
8 Sold $4,350 of merchandise (that had cost $1,740) tocustomers who used their Access cards.
13 Wrote off the account of Abigail McKee against theAllowance for Doubtful Accounts. The $571 balance in McKee’saccount stemmed from a credit sale in October of last year.
18 Received Morris’s check in full payment for the purchase ofJune 4.
Required:
Prepare journal entries to record the preceding transactionsand events. (The company uses the perpetual inventorysystem.)
