aying $90 (which equals the net connection. Forty Tablet Bundle A Page 1 of3 e s
ID: 2519616 • Letter: A
Question
aying $90 (which equals the net connection. Forty Tablet Bundle A Page 1 of3 e sioned on January 2, 2019,for the 40 extended contracts, Assume the Problem 18-4 Page I of 3 Print by: GUILLERM?NA LORENZO 335,D301.Spring 2018.seda / ? 18 *Problem 18-4 Pharoah Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units. Pricing and cost information on Pharoah's main products are as follows. Standalone Selling Price (Cost) Item Refrigerator $490 ($260) (270) (400) 570 700 Range Stackable washer/dryer unit Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800. The bundle price includes delivery and installation. Pharoah also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Pharoah Appliance Co.Explanation / Answer
The journal entries are:
Calculations and explanations:
On 1st Feb cash amount = 380 units*$1800*10% = $68,400
On 1st April sales = 380*1800 = 684,000
Accounts receiveable = 684,000 - 68,400 = 615,600
Cost of goods sold = 380*(260+270+400)
= $353,400
Date Account titles Debit Credit 1-Feb-17 Cash 68,400.00 Unearned sales revenue 68,400.00 1-Apr-17 Accounts receivable 615,600.00 Unearned sales revenue 68,400.00 Sales revenue 684,000.00 1-Apr-17 Cost of goods sold 353,400.00 Inventory 353,400.00Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.