Question

On August 12, a company provides services on account to a customer for $3,200. However, on August 16, the customer is not completely satisfied with the service and the company grants an allowance on the amount owed of $460. 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

Answer 1

Journal Entries are as follows;

Step-by-step explanation:

Aug 12.

Account Receivable Dr.$3,200

Service Revenue Cr.$3,200

Aug 16.

Service Revenue/Discount Allowed Dr.$460

Account Receivable Cr.$460

August 20.

Bank Dr. $.2,740

Account Receivable (3,200-460) Cr.$2,740