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Data Recovery Services ( DRS ) specializes in data recovery from crashed hard drives. The price charged varies based on the extent of damage and
Data Recovery Services DRS 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. DRS offers a discount to students and faculty at educational institutions. Consider the following transactions during the month of June.
June Rashids hard drive crashes and he sends it to DRS
June After initial evaluation, DRS emails Rashid to let him know that full data recovery will cost $
June Rashid informs DRS that he would like them to recover the data and that he is a student at UCLA, qualifying him for a educational discount and reducing the cost by $ $times
June DRS performs the work and claims to be successful in recovering all data. DRS asks Rashid to pay within days of todays date, offering a discount for payment within days.
June When Rashid receives the hard drive, he notices that DRS did not successfully recover all data. Approximately of the data has not been recovered and he informs DRS
June DRS reduces the amount Rashid owes by
June Rashid pays the amount owed.
Required:
Record the necessary transactions for Data Recovery Services on each date.
Show how net revenues would be presented in the income statement.
Calculate net revenues if Rashid had paid his bill on June
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