April 25 Debit Credit Accounts Receivable 3,100 Service Revenue 3,100 (Record service revenue on account) April 27 Debit Credit Sales Allowance 560 Accounts Receivable 560 (Record sales allowance) April 30 Debit Credit Cash 2,540 Accounts Receivable 2,540 (Record cash collection) Explanation: On April 25, Richards Electric provided services on account, meaning payment was not received immediately. The amount due from the customer is $3,100. This is recorded as a debit to Accounts Receivable and a credit to Service Revenue. On April 27, Richards Electric granted a sales allowance of $560 to the customer due to the work not passing inspection. This is recorded as a debit to Sales Allowance, which is a contra-revenue account, and a credit to Accounts Receivable, reducing the amount that the customer owes. On April 30, the customer makes full payment of the balance owed, excluding the allowance. The payment received is therefore $3,100 less the $560 allowance, which equals $2,540. This is recorded as a debit to Cash and a credit to Accounts Receivable, clearing the amount that was previously recognized as receivable