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In: Accounting

On August 12, a company provides services on account to a customer for $3,000. However, on...

On August 12, a company provides services on account to a customer for $3,000. However, on August 16, the customer is not completely satisfied with the service and the company grants an allowance on the amount owed of $500. On August 20, the customer makes full payment of the balance owed, excluding the allowance. Record the services provided on August 12, the sales allowance on August 16, and the cash collection on August 20. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Solutions

Expert Solution

Journal entry

Date account and explanation Debit Credit
Aug 12 Account receivable 3000
Service revenue 3000
(To record service)
Aug 16 Sales return and allowance 500
Account receivable 500
(to record sales allowance)
Aug 20 Cash 2500
Account receivable 2500
(To record collection)

ekkarill92 answered 2 years ago
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