Question

After the first night of her three-night stay, ms. welk complained about the noise from the lounge on the floor below her room. the front desk agent assigned ms. welk another room for the rest of her stay and decreased her folio balance by $25 as compensation for the inconvenience. this type of transaction is called a(n):

Answer 1

This transaction is called account allowance. Account allowance includes two kinds of transactions – to reduce in the folio balance compensation for poor service and the other one is to correct posting mistakes after the close of business. This kind of transaction is recognized by the usage of an allowance voucher, allowance vouchers are typically necessitate management endorsement.