1) Determine the price of all three services
Particulars | Amount |
Dishwasher only | $1,273 |
Installation only ($1,407 - $1,273) | $134 |
Maintenance service only ($1,541 - 1,273) | $268 |
Price of all three services | $1,675 |
The amount of revenue that should be allocated to the dishwasher the installation, and to the maintenance contract
Items | Amount | Working |
Dishwasher | $1224 | (1,273 / $1,675) * 1,611 |
Installation | $129 | ($134 / $1,675) * 1,611 |
Maintenance | $258 | ($268 / $1,675) * 1,611 |
$1,611 |
2) Journal entry:
Date | Account title and explanation | Debit | Credit |
Cash | $1,611 | ||
Sales revenue | $1,224 | ||
Service revenue | $129 | ||
Unearned service revenue | $258 | ||
(To record the revenue) |
The Cullumber Appliance Store is an experienced home appliance dealer. Cullumber also offers a number of...
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