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lyudmila [28]
3 years ago
5

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 3% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits 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 deducts a 2% 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 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris. 5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards. 6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards. 8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards. 10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year. 17 Received the amount due from Access. 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.)
Business
1 answer:
alexandr402 [8]3 years ago
3 0

Answer:

June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris.

June 4

Dr Accounts receivable 650

    Cr Sales revenue 650

June 4

Dr Cost of goods sold 400

    Cr Inventory 400

5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards.

June 5

Dr Accounts receivable 6,693

Dr Credit card fees 207

    Cr Sales revenue 6,900

June 5

Dr Cost of goods sold 4,200

    Cr Inventory 4,200

June 5, after Zisa transfers the money

Dr Cash 6,693

    Cr Accounts receivable 6,693

6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards.

June 6

Dr Unbilled revenue 5,733

Dr Credit card fees 117

    Cr Sales revenue 5,850

June 6

Dr Cost of goods sold 3,800

    Cr Inventory 3,800

8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards.

June 8

Dr Unbilled revenue 4,263

Dr Credit card fees 187

    Cr Sales revenue 4,350

June 8

Dr Cost of goods sold 2,900

    Cr Inventory 2,900

10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.

June 10

Dr Accounts receivable 9,996

    Cr Unbilled revenue 9,996

13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year.

June 13

Dr Bad debt expense 429

    Cr Allowance for doubtful accounts 429

17 Received the amount due from Access.

June 17

Dr Cash 9,996

    Cr Accounts receivable 9,996

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

June 18

Dr Cash 650

    Cr Accounts payable 650

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azamat

Answer:

The price of the bonds is $ 1,276.

Explanation:

The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.

Future Value = Redemption present value (RPV) + Present value of interest   (PVI)

RPV = 1,000 (1+5%)^-15 = $ 481 -A

PVI = 36.25 * Annuity factor  =$ 759 -B

Future Value = A + B = $ 1,276  

Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+5%/2)^-30)/(5%/2) = 20.9303

7 0
3 years ago
Income Statement Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March fo
IrinaVladis [17]

Answer:

Total Expense:      $ 347,000

Income:    $ 135,000

Explanation:

<u><em>Income Statement Imaging Services </em></u>

<u><em>For the Month Ended March 31, 2018</em></u>

Fees earned                                                                          $482,000

Wages expense                                      $ 300,000

Rent expense                                                $41,500

Supplies expense                                           $3,600

Miscellaneous expense                                   $1,900          

Total Expenses                                                                         $ 347,000

Income                                                                                       $ 135,000 Wages, rent , supplies and miscellaneous expenses are totaled and deducted from the fees earned. Fee earned is the revenue and the expenses are deducted from it. By deducting expenses from revenue we get the income.

7 0
3 years ago
Read 2 more answers
The goal of utility maximization is to allocate your ______ in order to maximize your ______.
inn [45]
<span>The goal of utility maximization is to allocate your resources in order to maximize your satisfaction.
Utility maximization is a concept which is used in the economics which explains that when a person is making a decision to purchase anything, he/she prefer to get the greatest value that is possible but at the least amount of money.
</span>
5 0
3 years ago
Suppose that the Dallas School District wants to achieve Six Sigma quality levels of performance in delivering students to schoo
Kay [80]

Answer:

a) 1.66 minutes

b) 3.4 out of million deliveries

Explanation:

So, it is a six sigma quality question, we first need to understand little bit about six sigma and how it is to achieve six sigma level.

<u>Six Sigma:</u>

It is the process or technique used by many organizations through out the world to achieve maximum quality in a product or in a service they are providing. It helps to indicate root causes of the process or you can say waste steps which first need to be identified then rectified to bring that top-notch quality in the system. So in this case, in order to calculate part a) we will calculate six sigma control limits.

a) So, for six sigma control limits, the maximum allowable standard deviation is 12 or you can say +6 + (-6) = ±6 = 12. It means all deviations must lie in all 12 standard deviations.

<em>Please refer to the table shown in the attachment.</em> This bell curve represent six sigma concept. In this <em>3 sigma quality level means all deviations must lie in 6 standard deviations.</em>

So, here we have been given that mean = 20, so with mean we can calculate standard deviation in six sigma control limits.

Maximum Allowable Standard Deviation for 6 sigma = Mean/12

                                                                                        = 20/12

                                                                                       = 1.66

So, 1.66 is the maximum allowable standard deviation of arrival times required in order to achieve 6 sigma quality level.

b) In this part, we are asked that, out of million deliveries about how many times bus deliver students too early or too late at this 6 sigma quality level.

<em>For this answer, please refer to attachment again</em>. and notice at the left bottom with the arrow of 6 sigma, we have a number 3.4 ppm means 3.4 part per million.

<em>So, it 3.4 times in a million deliveries bus will deliver students either too early or too late. </em>

8 0
3 years ago
Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the merchandise on hand at t
cricket20 [7]

Answer:

The missing part of the question is found below:

Cinnamon Buns Co. (CBC) started 2021 with $52,000 of merchandise on hand. During 2021, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.

Option A,$318,000 is correct

Explanation:

The points to note  in answering this question are :

The opening inventory of $52,000 was overvalued as $10,000 out of it was held for third as consignment,hence it does belong to Cinnamon Buns Co(CBC).

Secondly,in calculating the costs of goods available the freight charges are disregarded since it assumed to have been paid by the supplier.

Lastly discounts are assumed not have been taken,as a result the purchase and returns should be stated at invoice prices.

Restated opening inventory=$52,000-$10,000=$42,000

Merchandise purchased is $280,000

merchandise returned is $4,000

Costs of goods available=opening inventory+purchases-returns

                                         =$42,000+$280,000-$4000

                                         =$318,000

4 0
3 years ago
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