Problem 5-2A (Algo) Record transactions related to credit sales and contra revenues (LO5-1, 5-2) Salomon Outdoors provides guided fishing tours. The company charges $280 per person but offers a 15% discount to parties of four or more. Consider the following transactions during the month of May. Charlene books a fishing tour with Salomon Outdoors for herself and four friends at the group discount price (51,190 $238 53. The tour is scheduled for May 7. May 7 The fishing tour occurs. Salomon Outdoors asks that payment be made within 30 days of the tour and offers a discount for payment within 15 days. Charlene 9 is upset that no one caught a single fish and asks management for a discount. Salomon Outdoors has a strict policy of no discounts related to number of fish caught. May 15 Upon deeper investigation, management of Salomon Outdoors discovers that Charlene's tour was led by a new guide who did not take the group to some of the better fishing spets. In concession, nanagement offers a sales allowance of 30% of the amount due. May 20 Salomon Outdoors receives the amount owed by Charlene. Required: 1. Record the necessary transaction(s) for Salomon Outdoors on each date. 2. Show how Salomon Outdoors would present net revenues in its income statement. Complete this question by entering your answers in the tabs below. Required aftsquiend a Record the necessary transaction(s) for Salomon Outdoors on each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places) View transaction list Journal entry worksheet < Charlene books a fishing tour with Salomon Outdoors for herself and four friends at the group discount price ($1,190 $238 5). The tour is scheduled for May 7. Note: Enter debts before credits Date May 02 Besart natry General Journal Clear entry Debit Credit View peneral journal Journal entry worksheet < 1 < Note: Enter debits before credits. The fishing tour occurs. Salomon Outdoors asks that payment be made within 30 days of the tour and offers a 4% discount for payment within 15 days. Date May 07 Record entry 3 2 Date May 15 Journal entry worksheet 4 Record entry 3 General Journal Clear entry General Journal Required 1 Upon deeper investigation, management of Salomon Outdoors 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 Note: Enter debits before credits Clear entry Debit Credit View general journal Required 2 > Debit Credit View general journal > Journal entry worksheet Charlene is upset that no one caught a single fish and asks management for a discount. Salomon Outdoors has a strict policy of no discounts related to number of fish caught. Note: Enter debits before credits Date May 09 Record entry 1 Journal entry worksheet. < 2 Date May 20 3 Note: debits before credits Record entry General Journal 5 Clear entry Salomon Outdoors receives the amount owed by Charlene. General Journal Clear entry Required 1 Debit Credit View general journal Required 2 > Debit Credit View general Journal

Problem 5-2A (Algo) Record transactions related to credit sales and contra revenues (LO5-1, 5-2) Salomon Outdoors provides guided fishing tours. The company charges $280 per person but offers a 15% discount to parties of four or more. Consider the following transactions during the month of May. Charlene books a fishing tour with Salomon Outdoors for herself and four friends at the group discount price (51,190 $238 53. The tour is scheduled for May 7. May 7 The fishing tour occurs. Salomon Outdoors asks that payment be made within 30 days of the tour and offers a discount for payment within 15 days. Charlene 9 is upset that no one caught a single fish and asks management for a discount. Salomon Outdoors has a strict policy of no discounts related to number of fish caught. May 15 Upon deeper investigation, management of Salomon Outdoors discovers that Charlene's tour was led by a new guide who did not take the group to some of the better fishing spets. In concession, nanagement offers a sales allowance of 30% of the amount due. May 20 Salomon Outdoors receives the amount owed by Charlene. Required: 1. Record the necessary transaction(s) for Salomon Outdoors on each date. 2. Show how Salomon Outdoors would present net revenues in its income statement. Complete this question by entering your answers in the tabs below. Required aftsquiend a Record the necessary transaction(s) for Salomon Outdoors on each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places) View transaction list Journal entry worksheet < Charlene books a fishing tour with Salomon Outdoors for herself and four friends at the group discount price ($1,190 $238 5). The tour is scheduled for May 7. Note: Enter debts before credits Date May 02 Besart natry General Journal Clear entry Debit Credit View peneral journal Journal entry worksheet < 1 < Note: Enter debits before credits. The fishing tour occurs. Salomon Outdoors asks that payment be made within 30 days of the tour and offers a 4% discount for payment within 15 days. Date May 07 Record entry 3 2 Date May 15 Journal entry worksheet 4 Record entry 3 General Journal Clear entry General Journal Required 1 Upon deeper investigation, management of Salomon Outdoors 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 Note: Enter debits before credits Clear entry Debit Credit View general journal Required 2 > Debit Credit View general journal > Journal entry worksheet Charlene is upset that no one caught a single fish and asks management for a discount. Salomon Outdoors has a strict policy of no discounts related to number of fish caught. Note: Enter debits before credits Date May 09 Record entry 1 Journal entry worksheet. < 2 Date May 20 3 Note: debits before credits Record entry General Journal 5 Clear entry Salomon Outdoors receives the amount owed by Charlene. General Journal Clear entry Required 1 Debit Credit View general journal Required 2 > Debit Credit View general Journal

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter18: Acquiring Capital For Growth And Development

Section: Chapter Questions

Problem 2AP

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