E5-27B. (Learning Objectives 1, 2, 3: Apply GAAP for proper revenue recognition; account for sales allowances; account for sales discounts) Town Center Tours provides historical guided tours of several U.S. cities. The company charges $175 per person for the eight-hour tour. For groups of four or more, a group discount of $25 per person is offered. Here is a selection of transactions during June: June 2 June 5 June 7 June 14 Laura booked a tour of San Francisco for June 5. She and three friends would be going on the tour; Laura booked the tour for the entire group. Town Center Tours asks that payment for the tour be made in full within ten days after the tour; it offers a 3% discount for payment within that ten-day period. Laura and her friends went on the tour of San Francisco. Near the end of the tour, the tour guide tripped on a step and twisted her ankle. Since the tour guide was unable to walk, the tour ended after seven hours instead of the full eight hours. Since the tour was shorter than planned, Laura called the customer service representative for Town Center Tours and requested a discount. The representative agreed to give a discount of $100 in total for the tour. Laura paid for the group tour. Requirement 1. Journalize all transactions for Town Center Tours.

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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Question

Town Center Tours provides historical
guided tours of several U.S. cities. The company charges $175 per person for the eight-hour tour.
For groups of four or more, a group discount of $25 per person is offered. Here is a selection of
transactions during June:

Requirement
1. Journalize all transactions for Town Center Tours.

E5-27B. (Learning Objectives 1, 2, 3: Apply GAAP for proper revenue recognition; account
for sales allowances; account for sales discounts) Town Center Tours provides historical
guided tours of several U.S. cities. The company charges $175 per person for the eight-hour tour.
For groups of four or more, a group discount of $25 per person is offered. Here is a selection of
transactions during June:
June 2
June 5
June 7
June 14
Laura booked a tour of San Francisco for June 5. She and three friends would be going
on the tour; Laura booked the tour for the entire group. Town Center Tours asks that
payment for the tour be made in full within ten days after the tour; it offers a 3%
discount for payment within that ten-day period.
Laura and her friends went on the tour of San Francisco. Near the end of the tour, the
tour guide tripped on a step and twisted her ankle. Since the tour guide was unable to
walk, the tour ended after seven hours instead of the full eight hours.
Since the tour was shorter than planned, Laura called the customer service
representative for Town Center Tours and requested a discount. The representative
agreed to give a discount of $100 in total for the tour.
Laura paid for the group tour.
Requirement
1. Journalize all transactions for Town Center Tours.

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