Snow Co, is a machine manufacturer. The company also gives maintenance services. Snow Co. agreed to sell
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Snow Co, is a machine manufacturer. The company also gives maintenance services. Snow Co. agreed to sell a machine and a 4-year maintenance service to its customer at 300,000 on 1 December 2018.
The machine and maintenance service can be sold separately.
The machine has a price of 255,000 and 4 -year service has a price of 85,000 .
Snow Co. installed the machine to the customer's factory on 31 January 2019, and collected all sales revenue (300,000) on this date.
According to the sales contract the maintenance service starts after the installation.
Make the necessary calculations and journal entries until 31 December 2020 (be careful about the performance obligations
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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