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Merry Maidens Cleaning generally charges $300 for a detailed cleaning of a normal-size home. However, to generate additional business, Merry Maidens is offering a new-customer discount of 10%. On May 1, Ms. E. Pearson has Merry Maidens clean her house and pays cash equal to the discounted price.Record the revenue earned by Merry Maidens Cleaning on May 1.

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Edufirst

Answer:

  • Record:

        Account name                     Debit       Credit

            Ca                                      270            

            Service revenues                                 270

Explanation:

The revenue earned by Merry Maidens Cleaning on May 1, is the amount paid by Ms. E. Pearson.

Ms. Pearson paid the discounted price, which is calculated in this way:

  • Regular price:           $300.00
  • 10% discount:            $300.00 × 10% = $300 × 0.10 = $30.00

  • Payment:                    Regular price - discount

                                           $300.00 - $30.00 = $270.00

When the company earns a revenue the revenues account increases and must show a credit.

If cash is received then an asset is increasing, thus the cash account must show a debit.

Thus the operation must be recorded as:

        Account name                     Debit       Credit

            Car                                      270            

            Service revenues                                 270

abiolataiwo2015

The journal entry to record  the revenue earned by Merry Maidens Cleaning on May 1 is: debit cash $270, credit service revenue $270.  

Journal entry

Based on the information given the journal entry to record  the revenue earned by Merry Maidens Cleaning on May 1 is:

Merry Maidens  journal entry

Debit  Cash $270                                      

Credit Service revenues $270

[$300-($300 × 0.10)]

(To record revenue earned)

Inconclusion the journal entry to record  the revenue earned by Merry Maidens Cleaning on May 1 is: debit cash $270, credit service revenue $270.  

Learn more about revenue earned here:https://brainly.com/question/25623677

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