Question
Use the following to answer questions 1 5 For the next few weeks, the company is offering a 10% trade discount when providing services of
Use the following to answer questions 1 5
For the next few weeks, the company is offering a 10% trade discount when providing services of $10,000 or more to its customers to encourage customers to buy more services. The company also offers 2/10, n30 on all credit sales. All credit sales are invoiced at the end of the month. The company provided the following services this month; amounts are shown before trade discounts have been deducted:
Provides $10,000 services for Customer A on account pays within 10 days
Provides $8,000 services for Customer B on account pays within 10 days
Provides $15,000 services for Customer C on account pays within 30 days
Provides $5,000 services for Customer Dreceived payment last month
1. $__________What amount of Service revenue should the company record for Customer A?
2. $_____8k______What amount of Service revenue should the company record for Customer B?
3. $_______Customer B pays within 10 days; how much will they pay?
4. $_______Determine the monthly Service revenue for the company
5. $________Determine the companys Net service revenue for the month
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