Great American Oilchange (GAO) sells a combined oil change service and parts package for $40. A customer who supplies the parts (oil and filter) is charged $30 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $30 for the parts. The parts cost GAO $24. CP6-4 (Algo) Part 2 :. Prepare the journal entry GAO would record if GAO provides a combined oil change service and parts package to a customer on October 7. Assume GAO distinguishes Service Revenue from Sales Revenue arising from the sale of part uses a perpetual inventory system for recording the cost of goods sold, and it collects cash the day the oil change is performed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Great American Oilchange (GAO) sells a combined oil change service and parts package for $40. A customer who supplies the parts (oil and filter) is charged $30 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $30 for the parts. The parts cost GAO $24. CP6-4 (Algo) Part 2 :. Prepare the journal entry GAO would record if GAO provides a combined oil change service and parts package to a customer on October 7. Assume GAO distinguishes Service Revenue from Sales Revenue arising from the sale of part uses a perpetual inventory system for recording the cost of goods sold, and it collects cash the day the oil change is performed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...
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