Question

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
Next > < Previous

Related Solutions

On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,200, terms...
On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,200, terms 4/10, n/30. Grace pays for those services on March 20.   Required: For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2. During 2021, its first year of operations, Pave Construction provides services on account...
a. On August 1, 2020, the following were the account balances of Sheffield Repair Services. Debit...
a. On August 1, 2020, the following were the account balances of Sheffield Repair Services. Debit Credit Cash $6,400 Accumulated Depreciation—Equipment 640 Accounts Receivable 3,080 Accounts Payable 2,440 Notes Receivable 4,200 Unearned Service Revenue 1,340 Supplies 1,090 Salaries and Wages Payable 1,510 Equipment 10,600 Owner's Capital 19,440 25,370 25,370 During August, the following summary transactions were completed. Aug. 1 Paid $420 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. 3...
A bank provides financial services for customers. A customer approaches a bank branch and can open...
A bank provides financial services for customers. A customer approaches a bank branch and can open bank account(s). Before opening an account, the customer must fill a form for creating a customer record and then submit the form to a staff member. The system will create a new customer personal record based on the captured customer’s details from an online form. Consider the above processing requirements description of the Bank Management System application Your tasks are:            1.Draw the Entity...
Paid $4700 to creditors on account. Collected $12600 from customer billed on August 18. Paid $800...
Paid $4700 to creditors on account. Collected $12600 from customer billed on August 18. Paid $800 for utilities during August. What are the debits and credits for all three and how do you know?
21. A customer has requested that Bricks Company fill a special order for 3,000 units of...
21. A customer has requested that Bricks Company fill a special order for 3,000 units of the product N11 for $20.30 per unit. While the product needs to be modified slightly for the special order, the product N11's normal unit product cost is $18.50, as shown in the below table. Direct labor is a variable cost. The special order will have no effect on the company's total fixed manufacturing overhead costs. The customer wants some modifications to be made to...
SorCo. Inc. has just entered into a sale agreement with a customer. The contract is for $1,100,000. However, the payments will be made as follows: 1 August 20X1
SorCo. Inc. has just entered into a sale agreement with a customer. The contract is for $1,100,000. However, the payments will be made as follows: 1 August 20X1 on date of delivery $500,000; 1 August 20X2 $300,000 and 1 August 20X3 $300,000. SorCo has estimated that the interest rate required for this customer is 7%.Required:Prepare the journal entry required to record the sale on 1 August 20X1 and the receipt of cash on 1 August 20X2 and 20X3.
On August 1, 2017, the following were the account balances of B&B Repair Services.   Debit     Credit...
On August 1, 2017, the following were the account balances of B&B Repair Services.   Debit     Credit Cash   $ 6,040   Accumulated Depreciation—Equipment   $   600 Accounts Receivable   2,910   Accounts Payable   2,300 Notes Receivable   4,000   Unearned Service Revenue   1,260 Supplies   1,030   Salaries and Wages Payable   1,420 Equipment   10,000   Common Stock   12,000             Retained Earnings     6,400   $23,980     $23,980 During August, the following summary transactions were completed. Aug.   1   Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during...
Market Makers Inc. (MMI) provides a range of services to its retail clients—customer service for inquiries,...
Market Makers Inc. (MMI) provides a range of services to its retail clients—customer service for inquiries, order taking, credit checking for new customers, and a variety of related services. Auto Supermarket (AS) is a large auto dealer that provides financing for the autos and trucks that it sells. AS has approached MMI to manage the inquiries that come in regarding these loans. AS is not satisfied with the performance of the call center it currently uses for handling inquiries on...
Market Makers Inc. (MMI) provides a range of services to its retail clients—customer service for inquiries,...
Market Makers Inc. (MMI) provides a range of services to its retail clients—customer service for inquiries, order taking, credit checking for new customers, and a variety of related services. Auto Supermarket (AS) is a large auto dealer that provides financing for the autos and trucks that it sells. AS has approached MMI to manage the inquiries that come in regarding these loans. AS is not satisfied with the performance of the call center it currently uses for handling inquiries on...
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August...
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2018, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance: Rowland Company UNADJUSTED TRIAL BALANCE August 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 7,135.00 2 Accounts Receivable 37,950.00 3 Prepaid Insurance 7,045.00 4 Supplies 1,895.00 5 Land 116,150.00 6 Building 148,750.00 7 Accumulated Depreciation-Building 88,280.00 8 Equipment 133,800.00 9 Accumulated Depreciation-Equipment 97,280.00 10 Accounts Payable...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT