For the next few weeks, the company is offering a 20% trade discount when providing services of $10,000 or m 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: . . . 1. S Provides $12,000 services for Customer A- on account-pays within 10 days Provides $7,000 services for Customer B-on account-pays within 10 days Provides $20,000 services for Customer C-on account-pays within 30 days Provides $8,000 services for Customer D-received payment last month What amount of Service revenue should the company record for Customer A?

For the next few weeks, the company is offering a 20% trade discount when providing services of $10,000 or m 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: . . . 1. S Provides $12,000 services for Customer A- on account-pays within 10 days Provides $7,000 services for Customer B-on account-pays within 10 days Provides $20,000 services for Customer C-on account-pays within 30 days Provides $8,000 services for Customer D-received payment last month What amount of Service revenue should the company record for Customer A?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 11RE

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