Record the necessary transaction for outdoor expo

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Reference no: EM131520828

Question: Outdoor Expo provides guided fishing tours. The company charges $200 per person but offers a 10% discount to parties of four or more. Consider the following transactions during the month of May.

May 2 Charlene books a fishing tour with Outdoor Expo for herself and four friends at the group discount price ($900 = $180 × 5). The tour is scheduled for May 7.

May 7 The fishing tour occurs. Outdoor Expo asks that payment be made within 30 days of the tour and offers a 5% discount for payment within 15 days.

May 9 Charlene is upset that no one caught a single fish and asks management for a discount. Outdoor Expo has a strict policy of no discounts related to number of fish caught.

May 15 Upon deeper investigation, management of Outdoor Expo 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 40% of the amount due.

May 20 Charlene pays for the tour after deducting the sales allowance.

Required: 1. Record the necessary transaction(s) for Outdoor Expo on each date.

2. Calculate net sales.

3. Show how Outdoor Expo would present net sales in its income statement.

Reference no: EM131520828

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