UNEARNED REVENUE AND CUSTOMER DEPOSITS On November 20, 2009, Green Bay Electronics agreed to manufacture and supply 500 electronic control units used by Wausau Heating Systems in large commercial and industrial installments. Wausau deposited $480 per unit upon signing the three-year purchase agreement, which set the selling price of each control unit at $1,500. Green Bay will record these units at $300 per unit in inventory. No units were delivered during 2009. In 2010, 100 units were delivered, 150 units were delivered during 2011, and the remaining units were delivered during 2012. Assume Green Bay uses a perpetual inventory system.
UNEARNED REVENUE AND CUSTOMER DEPOSITS On November 20, 2009, Green Bay Electronics agreed to manufacture and supply 500 electronic control units used by Wausau Heating Systems in large commercial and industrial installments. Wausau deposited $480 per unit upon signing the three-year purchase agreement, which set the selling price of each control unit at $1,500. Green Bay will record these units at $300 per unit in inventory. No units were delivered during 2009. In 2010, 100 units were delivered, 150 units were delivered during 2011, and the remaining units were delivered during 2012. Assume Green Bay uses a perpetual inventory system.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 78BPSB
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UNEARNED REVENUE AND CUSTOMER DEPOSITS
On November 20, 2009, Green Bay Electronics agreed to manufacture and supply 500 electronic control units used by Wausau Heating Systems in large commercial and industrial installments. Wausau deposited $480 per unit upon signing the three-year purchase agreement, which set the selling price of each control unit at $1,500. Green Bay will record these units at $300 per unit in inventory. No units were delivered during 2009. In 2010, 100 units were delivered, 150 units were delivered during 2011, and the remaining units were delivered during 2012. Assume Green Bay uses a perpetual inventory system.
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