White Glove Company offers home cleaning services. Three common transactions for the company are signing contracts with new customers, billing customers for services performed, and paying employee salaries. For example, on March 15 the company did the following:

1. Signed a contract with a new customer for $125 per week starting the first week in April.

2. Sent bills that totaled $6,000 to customers.

3. Paid $2,000 in salaries to employees.

Instructions

Write an e-mail to your instructor that explains if and how these transactions are recorded in the double-entry system. Include in your e-mail (a) whether, and why, the transaction should or should not be recorded, and (b) how the debit and credit rules are applied if the transaction is recorded.