Great American Oilchange (GAO) sells a combined oil change service and parts package for $30. A customer who supplies the parts (oil and filter) is charged $20 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $20 for the parts. The parts cost GAO $14.

Required:

1. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package.

2. Show the journal entry GAO would record if GAO provides a combined oil change service and parts package to a customer on October 7. Assume GAO distinguishes Service Revenue from Sales Revenue arising from the sale of parts, it uses a perpetual inventory system for recording the cost of goods sold, and it collects cash the day the oil change is performed.