Recovery Experts (RE) specializes in data recovery from crashed hard drives. The price charged varies based on the extent of damage and the amount of data being recovered. RE offers a 10% discount to students and faculty at educational institutions. Consider the following transactions during the month of June.

June 10 Luke’s hard drive crashes and he sends it to RE.

June 12 After initial evaluation, RE e-mails Luke to let him know that full data recovery will cost $1,600.

June 13 Luke informs RE that he would like them to recover the data and that he is a student at USC, qualifying him for a 10% educational discount and reducing the cost by $160 (= $1,600 x 10%).

June 16 RE performs the work and claims to be successful in recovering all data. RE asks Luke to pay within 30 days of today’s date, offering a 5% discount for payment within 10 days.

June 19 When Luke receives the hard drive, he notices that RE did not successfully recover all data. Approximately 25% of the data has not been recovered and he informs RE.

June 20 RE reduces the amount Luke owes by 25%.

June 30 Luke pays the amount owed.

Required:

1. Record the necessary transactions(s) for Recovery Experts on each date.

2. Calculate net revenues.

3. Show how net revenues would be presented in the income statement.

4. Calculate net revenues if Luke had paid his bill on June 25.