Data Recovery Services (DRS) specializesS in data recovery from crasned nard drives. The price charged varies based on the extent of damage and the amount of data being recovered. DRS offers a 10% discount to students and faculty at educational institutions. Consider the following transactions during the month of June. June 10 Rashid’s hard drive crashes and he sends it to DRS. June 12 After initial evaluation, DRS e-mails Rashid to let him know that full data recovery will cost $3,000. June 13 Rashid informs DRS that he would like them to recover the data and that he is a student at UCLA, qualifying him for a 10% educational discount and reducing the cost by $300 (= $3,000 × 10%). June 16 DRS performs the work and claims to be successful in recovering all data. DRS asks Rashid to pay within 30 days of today's date, offering a 2% discount for payment within 10 days. June 19 When Rashid receives the hard drive, he notices that DRS did not successfully recover all data. Approximately 30% of the data has not been recovered and he informs DRS. June 20 DRS reduces the amount Rashid owes by 30%. June 30 Rashid pays the amount owed. ow how net revenues would be presented in the income statement. Answer is complete but not entirely correct.
Data Recovery Services (DRS) specializesS in data recovery from crasned nard drives. The price charged varies based on the extent of damage and the amount of data being recovered. DRS offers a 10% discount to students and faculty at educational institutions. Consider the following transactions during the month of June. June 10 Rashid’s hard drive crashes and he sends it to DRS. June 12 After initial evaluation, DRS e-mails Rashid to let him know that full data recovery will cost $3,000. June 13 Rashid informs DRS that he would like them to recover the data and that he is a student at UCLA, qualifying him for a 10% educational discount and reducing the cost by $300 (= $3,000 × 10%). June 16 DRS performs the work and claims to be successful in recovering all data. DRS asks Rashid to pay within 30 days of today's date, offering a 2% discount for payment within 10 days. June 19 When Rashid receives the hard drive, he notices that DRS did not successfully recover all data. Approximately 30% of the data has not been recovered and he informs DRS. June 20 DRS reduces the amount Rashid owes by 30%. June 30 Rashid pays the amount owed. ow how net revenues would be presented in the income statement. Answer is complete but not entirely correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Data Recovery Services (DRS) specializes in data recovery from crashed hard drives. The price charged varies based on
the extent of damage and the amount of data being recovered. DRS offers a 10% discount to students and faculty at
educational institutions. Consider the following transactions during the month of June.
June 10 Rashid's hard drive crashes and he sends it to DRS.
12 After initial evaluation,
$3,000.
June
DRS e-mails Rashid to let him know that full data recovery will
cost
June 13 Rashid informs DRS that he would like them to recover the data and that he is a student at UCLA,
qualifying him for a 10% educational discount and reducing the cost by $300 (= $3,000 x 10%).
16 DRS performs the work and claims to be successful in recovering all data.
within 30 days of today's date, offering a 2% discount for payment within 10 days.
June
DRS asks Rashid to pay
June 19 When Rashid receives the hard drive, he notices that DRS did not successfully recover
all
data.
Approximately 30% of the data has not been recovered and he informs DRS.
June 20 DRS reduces the amount Rashid owes by 30%.
June 30 Rashid pays the amount owed.
2. Show how net revenues would be presented in the income statement.
Answer is complete but not entirely correct.
DATA RECOVERY SERVICES
Partial Income Statement
Total service revenues
$
1,890 X
Less: Sales discount
X,
38 X
Net service revenues
1,852 X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education