Sweet Company sells goods that cost $317,000 to Ricard Company for $427,000 on J
ID: 2519214 • Letter: S
Question
Sweet Company sells goods that cost $317,000 to Ricard Company for $427,000 on January 2, 2017. The sales price includes an installation fee, which has a standalone selling price of $43,000. The standalone selling price of the goods is $384,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
Need help with the red incorrect marks. Thank you!!
Exercise 18-12 Your answer is partially correct. Try again Sweet Company sells goods that cost $317,000 to Ricard Company for $427,000 on January 2, 2017. The sales price includes an installation fee, which has a standalone selling price of $43,000. The standalone selling price of the goods is $384,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete (a) Prepare the journal entry (if any) to record the sale on January 2, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit ?27,000 ? Jan. 2, 2017 Accounts Receivabl ales Revenue 84,00 nearned Service Revenu 3,000 Jan. 2, 2017 Cost of Goods Sold 317000 nventor 317,00 (b) Sweet prepares an income statement for the first quarter of 2017, ending on March 31, 2017 (installation was completed on June 18, 2017). How much revenue should Sweet recognize related to its sale to Ricard? First Quarter Sales Revenue $384,00 Cost of Goods Sold 21,500 Gross Profit 405,500Explanation / Answer
(b) How much revenue should Sweet recognize related to its sale Ricard ?
First Quarter
Sales revenue $3,84,000
Service revenue
(Installation – $43,000 X 3/6) $21,500
Total revenue $4,05,500
Could you Please replace the cost of goods sold and gross profit column with Service Revenue and Total Revenue...They are asking the amount of total revenue should sweet recognise related it's sales to Ricard...The Amount of Revenue will be $405500 ($384000+$21500)
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