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Adventure Fishing provides guided fishing tours. The company charges $170 per person but offers a 20% discount to parties of four or more. Consider the following transactions during the month of May. Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price ($680 = $136 x 5). The tour is scheduled for May 7. The fishing tour occurs. Adventure Fishing asks that payment be made within 30 days of the tour and offers a 6% discount for payment within 15 days. 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. Upon deeper investigation, management of Adventure Fishing discovers that Charlene's 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 40% of the amount due. May 20 Adventure Fishing receives the amount owed by Charlene. May 2 May 7 May 9 May 15 Required: 1. Record the necessary transaction(s) for Adventure Fishing on each date. 2. Show how Adventure Fishing would present net revenues in its income statement.

Adventure Fishing provides guided fishing tours. The company charges $170 per person but offers a 20% discount to parties of four or more. Consider the following transactions during the month of May. Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price ($680 = $136 x 5). The tour is scheduled for May 7. The fishing tour occurs. Adventure Fishing asks that payment be made within 30 days of the tour and offers a 6% discount for payment within 15 days. 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. Upon deeper investigation, management of Adventure Fishing discovers that Charlene's 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 40% of the amount due. May 20 Adventure Fishing receives the amount owed by Charlene. May 2 May 7 May 9 May 15 Required: 1. Record the necessary transaction(s) for Adventure Fishing on each date. 2. Show how Adventure Fishing would present net revenues in its income statement.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Adventure Fishing provides guided fishing tours. The company charges $170 per person but offers a 20% discount to parties of four or more. Consider the following transactions during the month of May. Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price ($680 = $136 x 5). The tour is scheduled for May 7. The fishing tour occurs. Adventure Fishing asks that payment be made within 30 days of the tour and offers a 6% discount for payment within 15 days. 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. Upon deeper investigation, management of Adventure Fishing discovers that Charlene's 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 40% of the amount due. May 20 Adventure Fishing receives the amount owed by Charlene. May 2 May 7 May 9 May 15 Required: 1. Record the necessary transaction(s) for Adventure Fishing on each date. 2. Show how Adventure Fishing would present net revenues in its income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the necessary transaction(s) for Adventure Fishing on each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 3 Note: Enter debits before credits. Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price ($680 = $136 x 5). The tour is scheduled for May 7. Record entry 4 Date May 02 Accounts Receivable Sales Revenue General Journal 5 Clear entry Debit 680 Credit 680 View general journal
Transcribed Image Text:Adventure Fishing provides guided fishing tours. The company charges $170 per person but offers a 20% discount to parties of four or more. Consider the following transactions during the month of May. Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price ($680 = $136 x 5). The tour is scheduled for May 7. The fishing tour occurs. Adventure Fishing asks that payment be made within 30 days of the tour and offers a 6% discount for payment within 15 days. 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. Upon deeper investigation, management of Adventure Fishing discovers that Charlene's 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 40% of the amount due. May 20 Adventure Fishing receives the amount owed by Charlene. May 2 May 7 May 9 May 15 Required: 1. Record the necessary transaction(s) for Adventure Fishing on each date. 2. Show how Adventure Fishing would present net revenues in its income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the necessary transaction(s) for Adventure Fishing on each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 3 Note: Enter debits before credits. Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price ($680 = $136 x 5). The tour is scheduled for May 7. Record entry 4 Date May 02 Accounts Receivable Sales Revenue General Journal 5 Clear entry Debit 680 Credit 680 View general journal
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