Sarjit Systems sold software to a customer for $90,000. As part of the contract, Sarjit promises to provide “free” technical support over the following six months. Sarjit sells the same software without technical support for $80,000 and a stand-alone six-month technical support contract for $20,000, so these products would sell for $100,000 if sold separately. Prepare Sarjit’s journal entry to record the sale of the software (ignore any potential entry to revenue or cost of sales).
Answer to relevant QuestionsAssume Estate Construction is constructing a building for CyberB, an online retailing company. Under the construction agreement, if for some reason Estate could not complete construction, CyberB would own the partially ...Thomas Consultants provided Bran Construction with assistance with implementing various cost-savings initiatives.Thomas' contract specifies that it will receive a flat rate of $50,000 and an additional $20,000 if Bran ...On January 1 Revis Consulting enters into a contract to complete a cost reduction program for Green Financial over a six-month period. Green will pay Revis $20,000 at the end of each month. If total cost savings reach a ...On June 30, 2013, Fly-By-Night Airlines leased a jumbo jet from Boeing Corporation. The terms of the lease require Fly-By-Night to make 20 annual payments of $400,000 on each June 30. Generally accepted accounting principles ...[This is a variation of Exercise 7-6 modified to focus on the net method of accounting for cash discounts.] Harwell Company manufactures automobile tires. On July 15, 2013, the company sold 1,000 tires to the Nixon Car ...
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