Rubin Enterprises had the following sales-related transactions on a recent day: a. Billed customer $28,600 on account for services already provided. b. Collected $5,715 in cash for services to be provided in the future. c. The customer complained about aspects of the services provided in Transaction a. To maintain a good relationship with this customer, Rubin granted an allowance of $1,500 off the list price. The customer had not yet paid for the services. d. Rubin provided the services for the customer in Transaction b. Additionally, Rubin granted an allowance of $480 because the services were provided after the promised date. Because the customer had already paid, Rubin paid the $480 allowance in cash. Required: Prepare the necessary journal entry (or entries) for each of these transactions. PAGE 1 IMPACT ON FINANCIAL STATEMENTS JOURNAL BALANCE SHEET INCOME STATEMENT DATE DESCRIPTION POST. REF. DEBIT ASSETS LIABILITIES REVENUE EXPENSES NET INCOME CREDIT EQUITY 2 3 4 8
Rubin Enterprises had the following sales-related transactions on a recent day: a. Billed customer $28,600 on account for services already provided. b. Collected $5,715 in cash for services to be provided in the future. c. The customer complained about aspects of the services provided in Transaction a. To maintain a good relationship with this customer, Rubin granted an allowance of $1,500 off the list price. The customer had not yet paid for the services. d. Rubin provided the services for the customer in Transaction b. Additionally, Rubin granted an allowance of $480 because the services were provided after the promised date. Because the customer had already paid, Rubin paid the $480 allowance in cash. Required: Prepare the necessary journal entry (or entries) for each of these transactions. PAGE 1 IMPACT ON FINANCIAL STATEMENTS JOURNAL BALANCE SHEET INCOME STATEMENT DATE DESCRIPTION POST. REF. DEBIT ASSETS LIABILITIES REVENUE EXPENSES NET INCOME CREDIT EQUITY 2 3 4 8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Rubin Enterprises had the following sales-related transactions on a recent day:
a. Billed customer $28,600 on account for services already provided.
b. Collected $5,715 in cash for services to be provided in the future.
c. The customer complained about aspects of the services provided in Transaction a. To maintain a good relationship with this customer, Rubin
granted an allowance of $1,500 off the list price. The customer had not yet paid for the services.
d. Rubin provided the services for the customer in Transaction b. Additionally, Rubin granted an allowance of $480 because the services were
provided after the promised date. Because the customer had already paid, Rubin paid the $480 allowance in cash.
Required:
Prepare the necessary journal entry (or entries) for each of these transactions.

Transcribed Image Text:PAGE 1
IMPACT ON FINANCIAL STATEMENTS
JOURNAL
BALANCE SHEET
INCOME STATEMENT
DATE
DESCRIPTION
POST. REF.
DEBIT
ASSETS
LIABILITIES
REVENUE
EXPENSES
NET INCOME
CREDIT
EQUITY
2
3
4
8
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