On April 25, Foreman Electric installs wiring in a new home for $2,800 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $530 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required:
1. Record the credit sale on April 25.
2. Record the sales allowance on April 27.
3. Record the cash collection on April 30.
4. Calculate net sales associated with these transactions.

1. April 25

Dr Accounts receivable 2,800

Cr Service revenue 2,800

2. April 27

Dr Sales allowances 530

Cr Accounts receivable 530

3.April 30

Dr Cash 2,270

Cr Accounts receivable 2,270

4. Net sales $2,270

Explanation:

1. Preparation to record the credit sale on April 25 for Foreman Electric because Foreman Electric installs wiring in a new home for $2,800 on account which means to record service provide on account by :

April 25

Dr Accounts receivable 2,800

Cr Service revenue 2,800

2. Preparation to record the sales allowance on April 27 because  Foreman was said to grants the customer an allowance of $530 which means we have tobrecord sales allowances for credit sales by :

April 27

Dr Sales allowances 530

Cr Accounts receivable 530

3. Preparation to  record the cash collection on April 30 because the customer makes the full payment of the balance owed which exclude the allowance, on April 30 which means we have to  record collected cash on account less the sales allowance .

April 30

Dr Cash 2,270

(2,800-530)

Cr Accounts receivable 2,270

4.Calculation of the net sales associated with these transactions

Service revenue  2,800

Les sales allowances 530

Net sales $2,270

answer; the cpi;