Salomon Outdoors provides guided fishing tours. The company charges $250 per person but offers a 10% discount to parties of four or more. Consider the following transactions during the month of May.

May 2 Charlene books a fishing tour with Salomon Outdoors for herself and four friends at the group discount price ($1,125 - $225 5). The tour is scheduled for May 7.

May 7 The fishing tour occurs. Salomon Outdoors asks that payment be made within 30 days of the tour and offers a 4 discount for payment within 15 days.

May 9 Charlene is upset that no one caught a single fish and asks management for a discount. Salomon Outdoors has a strict policy

References

of no discounts related to number of fish caught.

15 Upon deeper investigation, management of Salomon Outdoors discovers that Charlene's tour was led 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 48% of the amount

due

May

May 20 Salomon Outdoors receives the amount owed by Charlene.

Required: 1.Record the necessary transaction(s) for Salomon Outdoors on each date.

Required 2. Show how Salomon Outdoors would present net revenues in its income statement.