The following selected transactions occurred for Bleumortier Corporation. The company uses a perpetual inventory system, has a May 31 year end, and adjusts its accounts annually.
Feb. 1 Sold merchandise for $6,000 to Morgan Ltd., which used a Bleumortier company credit card to pay for it. The cost of goods sold was $4,000.
3 Sold $13,400 of merchandise costing $8,800 to Gauthier Company and accepted Gauthier's two month, 6% note in payment. Interest is due at maturity.
26 Sold $8,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $5,400.
Mar. 6 Sold $4,000 of merchandise that cost $3,000 to Superior Limited. Superior paid using a bank credit card. The bank deducted $120 of service charges (credit card fees) from Bleumortier's bank account with respect to this sale.
31 Accepted a two-month, 7%, $8,000 note from Mathias for the balance due. Interest is due at maturity.
(See February 26 transaction.) Apr. 3 Collected the Gauthier note in full. (See February 3 transaction.) May 31 The Mathias note of March 31 was dishonoured. It is expected that Mathias will eventually pay the amount owed.
May 31 Recorded accrued interest for four months on outstanding credit card amount due from Morgan.
Interest on unpaid credit card balances is charged at 24% per annum (2% per month).
Instructions
Record the above transactions. Round calculations to the nearest dollar.