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Problem 5 - 2 A ( Algo ) Record transactions related to credit sales and contra revenues ( LO 5 - 1 , 5 -
Problem A Algo Record transactions related to credit sales and contra revenues LO
Adventure Fishing provides guided fishing tours. The company charges $ per person but offers a discount to parties of four or more. Consider the following transactions during the month of May.
May Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price $ $times The tour is scheduled for May
May The fishing tour occurs. Adventure Fishing asks that payment be made within days of the tour and offers a discount for payment within days.
May Charlene is upset that no one caught a single fish and asks management for a discount. Adventure Fishing has a strict policy of no discounts related to number of fish caught.
May Upon deeper investigation, management of Adventure Fishing discovers that Charlenes tour was led by a new guide who did not take the group to some of the better fishing spots. In concession, management offers a sales allowance of of the amount due.
May Adventure Fishing receives the amount owed by Charlene.
Required:
Record the necessary transactions for Adventure Fishing on each date.
Show how Adventure Fishing would present net revenues in its income statement.
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