On January 2, 2022, Boulder Pointe Air Conditioning and Heating sold and installed an HVAC system to DeMille Company for $2,750. The selling price is allocated as follows: (1) 90% for the HVAC unit and (2) 10% for an ongoing 4-year service contract for the HVAC unit.

A. Determine each of the following related to this sale:

B. Identify the contract between the company and the customer.
C. Identify the performance obligations of Boulder Pointe.
D. Determine the transaction price.
E. Allocate the transaction price to the performance obligations.
F. What amount of revenue should Boulder Pointe recognize for the year ended December 31, 2022?

Answer rating: 100% (QA)

The contract between Boulder Pointe Air Conditioning and Heating and DeMille Company is for the sale ... View the full answer