Adventure Fishing provides guided fishing tours. The company charges $260 per person but offers a 10% discount to parties of four 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 ($1,17 $234 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 5% disco 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 str 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 not take the group to some of the better fishing spots. In concession, management offers a sales allowance of 30% of 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 $260 per person but offers a 10% discount to parties of four 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 ($1,17 $234 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 5% disco 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 str 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 not take the group to some of the better fishing spots. In concession, management offers a sales allowance of 30% of 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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