Outdoor Expo provides guided fishing tours. The company charges $300 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 Outdoor Expo for herself and four friends at the group discount price ($1,200 = $240 x 5). The tour is scheduled for May 7. The fishing tour occurs. Outdoor Expo 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. Outdoor Expo has a strict policy of no discounts related to number of fish caught. Upon deeper investigation, management of Outdoor Expo 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 30% of the amount due. May 20 Outdoor Expo receives the amount owed by Charlene. May 2 May 7 May 9 May 15 Required: 1. Record the necessary transaction(s) for Outdoor Expo on each date. 2. Show how Outdoor Expo would present net revenues in its income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how Outdoor Expo would present net revenues in its income statement. (Do not round intermediate calculations. Round your answers to 2 decimal places.) OUTDOOR EXPO Partial Income Statement Total tour revenues Net tour revenues < Required 1 Required 2 >
Outdoor Expo provides guided fishing tours. The company charges $300 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 Outdoor Expo for herself and four friends at the group discount price ($1,200 = $240 x 5). The tour is scheduled for May 7. The fishing tour occurs. Outdoor Expo 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. Outdoor Expo has a strict policy of no discounts related to number of fish caught. Upon deeper investigation, management of Outdoor Expo 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 30% of the amount due. May 20 Outdoor Expo receives the amount owed by Charlene. May 2 May 7 May 9 May 15 Required: 1. Record the necessary transaction(s) for Outdoor Expo on each date. 2. Show how Outdoor Expo would present net revenues in its income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how Outdoor Expo would present net revenues in its income statement. (Do not round intermediate calculations. Round your answers to 2 decimal places.) OUTDOOR EXPO Partial Income Statement Total tour revenues Net tour revenues < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Outdoor Expo provides guided fishing tours. The company charges $300 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 Outdoor Expo for herself and four friends at the group discount price ($1,200 =
$240 x 5). The tour is scheduled for May 7.
The fishing tour occurs. Outdoor Expo 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. Outdoor Expo has a strict
policy of no discounts related to number of fish caught.
Upon deeper investigation, management of Outdoor Expo 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
30% of the amount due.
May 20 Outdoor Expo receives the amount owed by Charlene.
May 2
May 7
May 9
May 15
Required:
1. Record the necessary transaction(s) for Outdoor Expo on each date.
2. Show how Outdoor Expo would present net revenues in its income statement.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Show how Outdoor Expo would present net revenues in its income statement. (Do not round intermediate calculations. Round
your answers to 2 decimal places.)
OUTDOOR EXPO
Partial Income Statement
Total tour revenues
Net tour revenues
< Required 1
Required 2 >
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