Ayayai enters into a contract with Vaughan Company to purchase a gas fireplace unit. The sale agreement
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Question:
Ayayai enters into a contract with Vaughan Company to purchase a gas fireplace unit. The sale agreement is for a total price of $3110 and includes delivery of the unit, installation, and a two-year warranty. Installation successfully occurred on November 1, 2021. Vaughan Company often sells this gas fireplace for $2500 and offers installation and warranty services at $540 and $290 respectively. Using the stand-alone fair values, what amount would be recorded as revenue on November 1, 2021 under the contract-based approach to revenue recognition? Round intermediate calculation to 2 decimal places, e.g. 3.12 and final answer to the nearest whole dollar, e.g. 3.
- $2839
- $2500
- $2336
- $3110
Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-0324786668
21st Edition
Authors: David p. twomey, Marianne moody Jennings
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