Question

Required information Exercise 5-6B Record credit sales with a sales allowance (LO5-1, 5-2) [The following information applies to the questions displayed below.] On April 25, a company installs wiring in a new home for $3,000 on account. However, on April 27, the company's work does not pass inspection, and the company grants the customer an allowance of $550 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30.

Exercise 5-6B Part 4 4. Calculate net revenue associated with these transactions.

4. Calculate net revenue associated with these transactions Net revenue

Answer 1

4
Service revenues	3000
Less: Sales allowances	550
Net revenue	2450

Note: Sales allowances can alternatively be written with a minus sign