Reference no: EM132485386

Question 1: For each situation, write out which accounts increased or decreased for each transaction and the amount of the increase or decrease.

Point 1: Carter Landscaping Supplies and Services sells plants, landscaping supplies and landscaping services. It also sells tractors and other farming equipment that it receives on consignment from Zamanski Company. Zamanski pays Carter a 20% commission on any equipment that Carter sells on its behalf. Carter offers a 15-day return period on its plants and landscaping supplies and a one-year money-back guarantee on all of its products that it owns and sells. Carter had the following select transactions for the year 2019:

Customer 1: La Dolce Vida Restaurant

1. On January 8, Carter Landscaping Supplies and Services (Carter) received a $1,500 deposit from La Dolce Vida Restaurant for a landscaping project that would start on January 29.
2. On February 4, Carter completed the project for La Dolce Vida Restaurant for a total price of $5,200. La Dolce Vida paid the balance of the bill on that date.

Customer 2: Jessica Ortiz

1. On February 12, Carter sold $1,500 of sod to Jessica Ortiz on account. The bill was due 30 days from the date of sale.
2. On February 17, Ms. Ortiz contacted Carter to say that the sod that he purchased on February 12 was turning yellow in some spots. Carter offered Ms.. Ortiz a $500 allowance (discount) on the sod.
3. On March 10, Ms. Ortiz paid the amount due to Carter.

Customer 3: Silvestri Tree Services

1. On March 20, Carter sold a $7,000 tractor to Silvestri Tree Services that was on consignment from Zamanski Company. Silvestri paid the full bill on the date of sale. Carter delivered the tractor to Silvestri later that afternoon.

Customer 4: Waterside Condo Management

1. On March 22, Carter contracted to install plants and provide monthly landscape maintenance for one year to Waterside Condo Management. The selling price of the plants was $50,000 and the maintenance contract was $24,000 for the year. Carter received a $15,000 deposit towards the cost of the plants on the contract date and agreed to complete the installation of the plants by March 30.
2. On March 29, Carter completed the installation job for Waterside Condo Management. Waterside paid the remaining balance for the plants ($35,000) on that date.
3. On April 1, Waterside Condo Management prepaid the $24,000 maintenance contract. Carter will start performing the maintenance services on April 25. 
4. On April 25, Carter performed the first month of maintenance for Waterside Condo management.