On August 12,a Company Provides Services on Account to a Customer

question 8

Essay

On August 12,a company provides services on account to a customer for $3,000.However,on August 16,the customer is not completely satisfied with the service and the company grants an allowance on the amount owed of $400.On August 20,the customer makes full payment of the balance owed,excluding the allowance.Record the services provided on August 12,the sales allowance on August 16,and the cash collection on August 20.

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Definitions:

Tax Burden

The financial charge or impact that a taxpayer faces due to government taxation.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production purposes.

Unit

A standard measure or quantity used in expressing the size, amount, or extent of something, often used in economics for analysis.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.