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byrde company purchased a truck. the seller asked for $11,000, but byrde paid only $10,000 after negotiation. the owner of byrde company believes he got a great deal and the truck is really worth $15,000. what amount does byrde record on its financial statements for the truck? snell company performs and completes services for a client in may and bills the client $1,000. in june, the client makes a partial payment of $300 cash for the services. in july, the remaining $700 cash is paid. determine the monthly revenue recorded in may, june, and july for this service.
byrde company purchased a truck. the seller asked for $11,000, but byrde paid only $10,000 after negotiation. the owner of byrde company believes he got a great deal and the truck is really worth $15,000. what amount does byrde record on its financial statements for the truck? snell company performs and completes services for a client in may and bills the client $1,000. in june, the client makes a partial payment of $300 cash for the services. in july, the remaining $700 cash is paid. determine the monthly revenue recorded in may, june, and july for this service.
Final answer:Byrde companywill record $10,000 on its financial statements for the truck. The monthly revenue recorded for the services provided by Snell company is $1,000 in May, $300 in June, and $700 in July.Explanation:Byrde company will record $10,000 on its financial statements for the truck. The amount recorded is based on the actual cost paid, which is $10,000, rather than the owner's belief of the truck's worth. Thefinancial statementsreflect the actual transactions and costs incurred by the company.For the services provided by Snell company, the revenue is recorded when the services are performed, not when the cash is received. In May,Snell companyperformed and completed services for a client and billed the client $1,000. Therefore, the revenue recorded in May is $1,000.In June, the client made a partial payment of $300 cash for the services. The remaining $700 cash was paid in July. The revenue recorded in June is $300, which is the amount received in cash during that month. The revenue recorded in July is $700, which is the remaining amount received in cash during that month.Learn more aboutrecording transactionshere:brainly.com/question/14492226#SPJ14...