Appliance Plus Retail, sells major appliances and systems to their customers. They also employ technicians who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Appliance Plus Retail, sells major appliances and systems to their customers. They also employ technicians who can service these products. Sometimes customers opt only to purchase the product and sometimes customers chose to bundle the product with a service agreement. Two such arrangements were offered to customers as follows. Air Purifiers: Customers that upgrade to a higher quality (more expensive) air purifier get one service inspection on the purifier one year later on the purchase anniversary date. HVAC: Customers who have an HVAC system installed have two maintenance visits, one in the spring (May) and one in the fall (August) starting the year after purchase. Seller Appliance Plus Retailers Current accounting year end 12/31/X9 Order date 9/17/X9 Seller delivers the air purifiers to all customers 10/8/X9 who ordered in September on Seller installs all HVAC systems to all customers who ordered in September by 10/31/X9 Customer is required to pay at order date for bundled packages Price of air purifier if sold separately $500 Price of air purifier service contract if sold $170 separately Price of HVAC system if sold separately $4,800 Price of HVAC maintenance (two visits) if sold separately $360 Cost to purchase air purifier from manufacturing $222 supplier Cost to purchase HVAC (heating and air conditioning unit) from manufacturing supplier Bundled price for air purifier and service $2,955 $600 Bundled price for HVAC and service $4,900 # air purifier bundled packages purchased in September 34 # HVAC system bundled packages purchased in September 82 Seller's year end for financial reporting purposes December 20x9 is HVAC bundled packages will receive their maintenance inspection in May and August of the year following purchase. Air purifier customers will receive an inspection on the anniversary date of purchase. Combined journal entries should be prepared for the year for ALL customers. Consider ONLY the air purifier bundled packages sold. What amount of the TOTAL (not per package) transaction price should be allocated to the air purifier? 1. Input your numerical answer. 2. Do NOT use dollar signs or decimals. 3. Round your answer to the nearest whole dollar. 4. Rounding has been considered in the answer. Consider ONLY the HVAC systems bundled packages sold. What amount of the TOTAL (not per package) transaction price should be allocated to the maintenance on the HVAC? 1. Input your numerical answer. 2. Do NOT use dollar signs or decimals. 3. Round your answer to the nearest whole dollar. 4. Rounding has been considered in the answer. By the end of the current year end how much EARNED REVENUE (not gross profit) is permitted to be recognized for the HVAC packages ONLY? 1. Input your numerical answer. 2. Do NOT use dollar signs or decimals. 3. Round your answer to the nearest whole dollar. 4. Rounding has been considered in the answer. Appliance Plus Retail, sells major appliances and systems to their customers. They also employ technicians who can service these products. Sometimes customers opt only to purchase the product and sometimes customers chose to bundle the product with a service agreement. Two such arrangements were offered to customers as follows. Air Purifiers: Customers that upgrade to a higher quality (more expensive) air purifier get one service inspection on the purifier one year later on the purchase anniversary date. HVAC: Customers who have an HVAC system installed have two maintenance visits, one in the spring (May) and one in the fall (August) starting the year after purchase. Seller Appliance Plus Retailers Current accounting year end 12/31/X9 Order date 9/17/X9 Seller delivers the air purifiers to all customers 10/8/X9 who ordered in September on Seller installs all HVAC systems to all customers who ordered in September by 10/31/X9 Customer is required to pay at order date for bundled packages Price of air purifier if sold separately $500 Price of air purifier service contract if sold $170 separately Price of HVAC system if sold separately $4,800 Price of HVAC maintenance (two visits) if sold separately $360 Cost to purchase air purifier from manufacturing $222 supplier Cost to purchase HVAC (heating and air conditioning unit) from manufacturing supplier Bundled price for air purifier and service $2,955 $600 Bundled price for HVAC and service $4,900 # air purifier bundled packages purchased in September 34 # HVAC system bundled packages purchased in September 82 Seller's year end for financial reporting purposes December 20x9 is HVAC bundled packages will receive their maintenance inspection in May and August of the year following purchase. Air purifier customers will receive an inspection on the anniversary date of purchase. Combined journal entries should be prepared for the year for ALL customers. Consider ONLY the air purifier bundled packages sold. What amount of the TOTAL (not per package) transaction price should be allocated to the air purifier? 1. Input your numerical answer. 2. Do NOT use dollar signs or decimals. 3. Round your answer to the nearest whole dollar. 4. Rounding has been considered in the answer. Consider ONLY the HVAC systems bundled packages sold. What amount of the TOTAL (not per package) transaction price should be allocated to the maintenance on the HVAC? 1. Input your numerical answer. 2. Do NOT use dollar signs or decimals. 3. Round your answer to the nearest whole dollar. 4. Rounding has been considered in the answer. By the end of the current year end how much EARNED REVENUE (not gross profit) is permitted to be recognized for the HVAC packages ONLY? 1. Input your numerical answer. 2. Do NOT use dollar signs or decimals. 3. Round your answer to the nearest whole dollar. 4. Rounding has been considered in the answer.
Expert Answer:
Answer rating: 100% (QA)
1 Air purifier 500 contract 170 Total 670 500670 x600 448 Air Purifier 600 448 152 Contra... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
Students also viewed these accounting questions
-
Use the following information to answer this question. Company Y has the following information on its balance sheet: Assets Liabilities Cash 1,000,000 Accounts Payable 1,000,000 Accounts Receivable...
-
Use the following information for Al-Rahama's corporation 31/ 12/ 2019:Current Assets S.R 200000, Net fixed assets S.R 120000, Current Liabilities S.R 40000, Long term Liabilities S.R 60000, Owner's...
-
Use the following information for parts A to C. Leo buys 1,000 shares of American call options on the stock of PLU Limited. The price of the call option is $5.5 per share. The exercise price is $95...
-
After numerous campus interviews, Greg Thorpe, a senior at Great Northern College, received two office interview invitations from the Baltimore offices of two large firms. Both firms offered to cover...
-
Suppose that f, g are convex on an interval I. Prove that f + g and cf are convex on I for any c > 0.
-
On December 31, 2025, American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par,...
-
For Example 6.10, use a simulator to graph the effluent temperature of the methanol reactor as a function of the dodecane flow rate. Data From Example 6.10:- Data From Example 6.8:- Returning to...
-
Sort the following products into those priced with two-part tariffs, user charges only, or lump sum access fees only: pay-per-view movies on cable TV, pay phones, Netflix, iTunes, country club...
-
The Rolling Department of Jabari Steel Company had 7,407 tons in beginning work in process inventory (90% complete) on October 1. During October, 82,300 tons were completed. The ending work in...
-
a. Draw a UML class diagram that describes the Tablet Store's purchases and payments process. b. Using Microsoft Access, implement a relational database from your UML class diagram. Identify at least...
-
On January 1, 2010, P Company purchased an 80% interest in S Company for $900,000. At that time, S Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the...
-
With reference to Exercise 7.62, test the null hypothesis \(\sigma=600\) psi for the compressive strength of the given kind of steel against the alternative hypothesis \(\sigma>600\) psi. Use the...
-
If \(X\) is a continuous random variable and \(Y=X-\mu\), show that \(\sigma_{Y}^{2}=\sigma_{X}^{2}\).
-
Use the value \(s\) obtained in Exercise 9.3 to construct a \(98 \%\) confidence interval for \(\sigma\), measuring the actual variability in the hardness of Alloy 1. Data From Exercise 9.3 Data From...
-
The process of making concrete in a mixer is under control if the rotations per minute of the mixer has a mean of 22 rpm. What can we say about this process if a sample of 20 of these mixers has a...
-
With reference to Exercise 7.63, construct a \(99 \%\) confidence interval for the variance of the population sampled. Data From Exercise 7.63 7.63 A manufacturer claims that the average tar content...
-
Bridgeport Inc. declared a cash dividend of $0.50 per share on its 3.40 million outstanding shares. The dividend was declared on August 1 and is payable on September 9 to all shareholders of record...
-
What is the mode?
-
Sturdy Chair Company manufactures wooden chairs. In producing the chairs, a great deal of scrap wood is created, which is currently used as fuel in a factory furnace. However, the company has the...
-
Gretchen, Inc., a firm that makes oversized boots, purchased a machine for its factory. The following data relate to the machine: Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Pension plan information for Brassfield Company is as follows: December 31, 2012 Pension obligation liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,300,000 December...
-
Why is the definition of quality critical to the success and acceptance of a project?
-
What would the QA/QC planning grid (see Figure 12. 6) look like for a project you have been involved in? Data from Figure 12. 6 Table 12.6 QA/QC planning grid, with examples Quality assurance...
-
What quality systems and standards exist in your organisation to 1) ensure quality across the project and 2) ensure quality within the products and services produced by your projects?
Study smarter with the SolutionInn App