The following information applies to the questions displayed below.] On April 25
ID: 2399344 • Letter: T
Question
The following information applies to the questions displayed below.]
On April 25, Foreman Electric installs wiring in a new home for $2,700 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $520 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30.
Required:
1. 2. & 3. Record the Journal entries for the above information. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the service revenue on account.
Note: Enter debits before credits.
4. Calculate net revenue associated with these transactions.
Explanation / Answer
April 25
Accounts receivable. 2,700
Service revenue. 2,700
(provide service on account)
April 27
Sales allowances . 520
Accounts receivable . 520
(record sales allowances for credit sales)
April 30
Cash. 2,180
Accounts receivable. 2,180
(collect cash on account less sales allowance)
Service revenue . 2,700
Less: sales allowances . 520
Net sales 2,180
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