On April 25, Livingston Electric installs wiring in a new home for $3,300 on account. However, on April 27, Livingstons electrical work does not pass inspection, and Livingston grants the customer an allowance of $580 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30.

Required:

1. Record the journal entries for the above information:

A. record the service revenue on account

B. Record the sales allowance

C. record the cash collection

2. Calculate net sales reported in the income statement.