Use the following to answer questions 1 – 5For the next few weeks TJ Agency is offering a 20%trade discount when providing advertising services of$30,000 or more to its customers to encourage customersto buy more advertising. The Agency also offers 2/10,n30 on all credit sales. All credit sales are invoiced at theend of the month. The Agency provided the followingservices this month; amounts are shown BEFORE tradediscounts have been deducted.Remember, all sales and services are recorded at theagreed upon price.• Designs a $50,000 ad campaign for Customer A– onaccount- pays in 30 days• Designs a $75,000 ad campaign for Customer B– onaccount- pays within 10 days• Designs a $20,000 ad campaign for Customer C-account- pays within 10 dayson• Designs a $10,000 ad campaign for Customer D–received payment last month1.$What amount of Service revenueshould the Agency record for Customer A?2.$What amount of Service revenueshould the Agency record for Customer B?3.2$Customer B pays within 10 days,how much will they pay?4.Determine the monthly Servicerevenue for the Agency5.Determine the Agency's Netservice revenue for the month

Accounts Receivable:Sales form an important source of revenue for an enterprise. Sometimes, a…

For the next few weeks TJ Agency is offering a 20% trade discount when providing advertising services of $30,000 or more to its customers to encourage customer to buy more advertising. The Agency also offers 2/10, n30 on all credit sales. All credit sales are invoiced at tl end of the month. The Agency provided the following services this month; amounts are shown BEFORE tra

For the next few weeks TJ Agency is offering a 20% trade discount when providing advertising services of $30,000 or more to its customers to encourage customer to buy more advertising. The Agency also offers 2/10, n30 on all credit sales. All credit sales are invoiced at tl end of the month. The Agency provided the following services this month; amounts are shown BEFORE tra

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 11RE

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Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
following to answer question For the next few weeks, the company is offering a 20% trade discount when providing services of $10,000 or more to its customers to encourage customers to buy more services. The company also offers 2/10,n30 on all credit sales. All credit sales are invoiced at the end of the month. The company provided the following services this month; amounts are shown before trade discounts have been deducted: Provides $12,000 services for Customer A- on account-pays within 10 days • Provides $7,000 services for Customer B-on account-pays within 10 days Provides $20,000 services for Customer C-on account-pays within 30 days Provides $8,000 services for Customer D-received payment last month . 1. $ What amount of Service revenue should the company record for Customer A?
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The following information has been presented to you for 2018 by Wonder Projects Limited: September October November Rand Rand Rand Cash revenue 200 000 220 000 240 000 Credit revenue 120 000 180 000 190 000 Purchases (all credit) 130 000 140 000 120 000 Additional information: Collection of credit revenue: 50% in the month of invoice 30% one month after invoice 15% two months after invoice and the balance written off as irrecoverable. Purchases are on credit and are paid for one month after the purchase, less 5% Rent income amounts to R10 000 per The rent will increase by 8% on 1 October 2018. A fixed deposit of R150 000 will mature on 31 October 2018. Interest of R15 000 will also be received on this A new computer will be purchased on 3 September 2018 for R25 000 Salaries amount to R20 000 per A 10% increase will take effect on 1 October 2018. The owner is expected to take R5 000 cash from the business on 20 October…
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