Z-Mart uses the perpetual inventory system and allows customers to use the Z-Mart store credit card in charging purchases

Z-Mart uses the perpetual inventory system and allows customers to use the Z-Mart store credit card in charging purchases. Z-Mart assesses a per-month interest fee for any unpaid balance on its store credit card at each month-end.

Apr.		30		Z-Mart sold merchandise for $1,300 (that had cost $800) and accepted the customer’s Z-Mart store credit card.
May		31		Z-Mart recorded $7 of interest earned from its store credit card as of this month-end.

 Prepare journal entries to record the above selected credit card transactions of Z-Mart.

No	Date	General Journal	Debit	Credit
1	Apr 30	Accounts receivableselected answer correct	1,300selected answer correct	not attempted
		Salesselected answer correct	not attempted	1,300selected answer correct
2	Apr 30	Cost of goods soldselected answer correct	800selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	800selected answer correct
3	May 31	Accounts receivableselected answer correct	7selected answer correct	not attempted
		Interest revenueselected answer correct	not attempted	7selected answer correct

-----------------------------------------------------------------------------------

4.

Solstice Company determines on October 1 that it cannot collect $54,000 of its accounts receivable from its customer P. Moore. Apply the direct write-off method to record this loss as of October 1.

No	Date	General Journal	Debit	Credit
1	Oct 01	Bad debts expenseselected answer correct	54,000selected answer correct	not attempted
		Accounts receivable—P. Mooreselected answer correct	not attempted	54,000