Saxton Enterprises sells a supercomputer package to customers. The components of this package are as follows: Computer Printer Extended Warranty Coupon for Wireless Stereo Speakers Coupon for Anti-Virus Software Installation Package $1,600 $300 $250 $75 $50 $200 The antivirus software is available to all customers for $100. It is estimated that 70% of the customers purchasing the computer package will purchase the anti-virus software. The wireless speakers have a retail cost of $75. The entire package sells for $1,900. Saxton sells 30 packages. a. How many performance obligations exist in this contract? b. Determine the allocation of the purchase price between the performance obligations. c. Prepare the journal entry to record the sale.

Saxton Enterprises sells a supercomputer package to customers. The components of this package are as follows: Computer Printer Extended Warranty Coupon for Wireless Stereo Speakers Coupon for Anti-Virus Software Installation Package $1,600 $300 $250 $75 $50 $200 The antivirus software is available to all customers for $100. It is estimated that 70% of the customers purchasing the computer package will purchase the anti-virus software. The wireless speakers have a retail cost of $75. The entire package sells for $1,900. Saxton sells 30 packages. a. How many performance obligations exist in this contract? b. Determine the allocation of the purchase price between the performance obligations. c. Prepare the journal entry to record the sale.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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