Question
Problem 2 (15 points) Recovery Experts (RE) specializes in data recovery from crashed hard drives. The price charged varies based on the extent of damage
Problem 2 (15 points)
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 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.
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