The following information applies to the questions displayed below.
On April 25, Foreman Electric installs wiring in a new home for $2,700 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $520 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30.
Required:
1. Record the journal entries for the above information.

Answer for the question:

The following information applies to the questions displayed below.

On April 25, Foreman Electric installs wiring in a new home for $2,700 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $520 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30.

Required:

1. Record the journal entries for the above information.

Is given in the attachment.

Explanation:

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23