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26 August, 16:11

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

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  1. 26 August, 19:40
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    Journal Entries are as follows;

    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
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