Outdoor expo provides guided fishing tours. The company charges $200 per person but offers a 10% for parties of four or more. Consider the following transactions during the month of May.
May 2: Charlene books a fishing tour with Outdoor Expo for herself and four friends at the group discount price ($900=$180X5) The tour is scheduled for May 7.
May 7: The fishing tour occurs. Outdoor Expo asks that the payment be made within 30 days of the tour and offers a 5% discount for payment within 15 days.
May 9: Charlene is upset that no one caught a single fish and asks management for a discount. Outdoor expo has a strict policy of no discounts related to number of fish caught.
May 15: Upon a deeper investigation, management of Outdoor Expo discover that Charlene tour was led a by a new guide who did not take the group to some of the better fishing spots. In concession, management offers a sales allowance of 40% of the amount due.
May 20: Charlene pays for the tour after deducting the sales allowance.
Required:
1.) Record the necessary transactions for Outdoor Expo on each date.
2.) Calculate the net sales.
3.) Show how Outdoor Expo would present net sales in it's income statement.