On April 25, Richards Electric installs wiring in a new home for $2,800 on account. However, on April 27, Richards’s electrical work does not pass inspection, and Richards grants the customer an allowance of $530 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. 4. Calculate net sales reported in the income statement.

On April 25, Richards Electric installs wiring in a new home for $2,800 on account. However, on April 27, Richards’s electrical work does not pass inspection, and Richards grants the customer an allowance of $530 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. 4. Calculate net sales reported in the income statement.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...

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On April 25, Foreman Electric installs wiring in a new home for $3,500 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $600 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required: 1. Record the credit sale on April 25. 2. Record the sales allowance on April 27. 3. Record the cash collection on April 30. 4. Calculate net sales associated with these transactions.
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