Bantay 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 2.50% service charge for sales on its credit card and credits the bank account of Bantay immediately when credit card receipts are deposited. Bantay deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Bantay accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 1.50% service charge and usually pays within one week of being billed. Bantay 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.)
Sold $800 of merchandise (that had cost $300) on credit to Alfredia Bullaro.
Sold $9,900 of merchandise (that had cost $5,500) to customers who used their Zisa cards.
Sold $6,060 of merchandise (that had cost $5,300) to customers who used their Access cards.
Sold $4,620 of merchandise (that had cost $3,200) 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 Trenton Wanek against the Allowance for Doubtful Accounts. The $508 balance in Wanek's account stemmed from a credit sale in October of last year.
17 Received the amount due from Access.
Received Bullaro's check in full payment for the purchase of June 4.
Prepare journal entries to record the preceding transactions and events.
Dear Student Please find... View the full answer