Binz Company provides cleaning services and sells garbage bi…

Binz Company provides cleaning services and sells garbage bins to office clients. On June 1, Binz delivered 100 garbage bins to a client, and also entered into a 5-year contract for Binz to provide cleaning services to that client. Which of the following statements about the recognition of revenue relating to these services is correct?

Using the income statement method for accounting for uncolle…

Using the income statement method for accounting for uncollectible accounts, a company estimates that 2.5% of credit sales will eventually become uncollectible. If credit sales during the year are $400,000 and accounts receivable at the end of the year are $80,000, the adjusting entry for estimated uncollectible accounts will require a:

Inventory records for Capetown, Incorporated revealed the fo…

Inventory records for Capetown, Incorporated revealed the following: Date Transaction Number of Units Unit Cost April 1 Beginning Inventory 500 $ 2.40 April 20 Purchase 400 2.50 Capetown sold 700 units of inventory during the month. Ending inventory assuming FIFO would be:

Garber Plumbers offers plumbing services to its customers. D…

Garber Plumbers offers plumbing services to its customers. During March, Garber provided $4,000 of plumbing services to Red Oak, Incorporated and $1,500 of services to Cyril, Incorporated. Each of these customers was granted credit terms of , net 30. If both customers paid for the plumbing services within the discount period, what was the net revenues amount for these two transactions?