Question
Use the following to answer questions 1 5 For the next few weeks CJM Ad Agency is offering a 10% trade discount when providing advertising
Use the following to answer questions 1 5 For the next few weeks CJM Ad Agency is offering a 10% trade discount when providing advertising services of $30,000 or more to its customers to encourage customers to buy more advertising. The Agency also offers 3/5, n30 on all credit sales. All credit sales are invoiced at the end of the month. The Agency provided the following services this month; amounts are shown before trade discounts have been deducted:
Designs a $30,000 ad campaign for Customer A on account pays in 30 days
Designs a $35,000 ad campaign for Customer B on account pays within 5 days
Designs a $21,000 ad campaign for Customer C on account pays within 5 days
Designs a $18,000 ad campaign for Customer Dreceived payment last month
1. $___________What amount of Service revenue should the Agency record for Customer A?
2. $___________What amount of Service revenue should the Agency record for Customer B?
3. $___________Customer B pays within 5 days, how much will they pay?
4. $___________Determine the monthly Service revenue for the Agency
5. $___________Determine the Agencys Net service revenue for the month
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Accounting And Auditing A Review Of Practices And Empirical Research Accounting Disclosure Auditing Performance Governance And Gender Diversity
Authors: Tariq H. Ismail
1st Edition
1636486517, 978-1636486512
