Question

Merry Maidens Cleaning generally charges $260 for a detailed cleaning of a normal-size home. However, to generate additional business, Merry Maidens is offering a new-customer discount of 10%. On May 1, Ms. E. Pearson has Merry Maidens clean her house and pays cash equal to the discounted price. Required: Record the revenue earned by Merry Maidens Cleaning on May 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Answer: $234

Explanation:

Answer 2

Answer:

cash         234 debit

    services revenue     234 credit

Explanation:

As Merry provided a 10% discount of her revenue for Merry will be net of discounts:

260 x (1 - 10% ) = 234

We do not use the discount account  as these contract was made for 234 it wasn't stated in an invoice Merry do not grant credit term it lowers their price 10%