Question

10 Part 1 of 3 Data Recovery Services (DRS) specializes in data recovery from crashed hard drives. The price charged varies based on the extent of damage and the amount of data being recovered. DRS offers a 10% discount to students and faculty at educational institutions. Consider the following transactions during the month of June. June 10 Rashid's hard drive crashes and he sends it to DRS June 12 After initial evaluation. Real Rashid to let him know that full data recovery will cost $3,000 June 13 asia Informa DS that he would like them to recover the data and that he is a student at UCLA, Jualifying him for a 108 educational discount and reducing the cost by $300 - $3,000 104). June 16 DRS performs the work and claims to be successful in recovering all data. Saks Rashid to pay within 30 days of today's date, offering a 21 discount for payment within 10 days. June 19 When Rashid receive the hard drive, he notice that RS did not successfully recover all data. Approximately 30% of the data has not been recovered and he intorns DRS June 20 RS reduces the amount Rashid oves by 301 June 30 Rashid pays the amount owed points Book Required: 1. Record the necessary transaction(s) for Data Recovery Services on each date of no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field) View transaction at Journal entry worksheet < 1 2 5 6 7 > Rashid's hard drive crashes and he sends it to DRS

Answer 1

Debit $ Credit $ Date Particular Jun-10 No Journal Entry required No Journal Entry required Jun-12 No Journal Entry required No Journal Entry required Jun-13 No Journal Entry required No Journal Entry required 2700 Jun-16 Account Receivables Service Revenue (For Service revenue recorded) 2700 Jun-19 No Journal Entry required No Journal Entry required 810 Jun-20 Sales Allowances Account Receivables (For giving 30% Allowance) 810 1890 Jun-30 Cash Account Receivables (For receiving final payment from Rashid) 1890