McGinty Consulting & Placement provides personnel services to clients in the Boston area. During the month of November, McGinty engaged in the following transactions:
Nov. 4 Received a $ 6,000 retainer from Morac & Associates for services to be rendered in January.
8 Sent JM Corporation a bill for $ 3,400 for services rendered during the week ended November 7, terms 2 10, n 30.
13 Provided services to Dillard Company and mailed an invoice for $ 1,900, terms 1 15, n 60.
17 Received a check from JM Corporation for services billed on November 8, less the applicable discount.
20 Received $ 5,700 from Natick Industries in full settlement of its account, after the discount period had elapsed.
28 Payment was received from Dillard Company for the invoice dated November 13, less the applicable discount.
A. Prepare journal entries to record these transactions.
B. Determine the amount of net revenue reported by McGinty for the month of November.
C. Determine the cash received from customers during the month of November. Would you expect it to be the same as net revenue? Why?