IBM manufactures and sells desktop computers as well as two year warranty. If sold separately, IBM...
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IBM manufactures and sells desktop computers as well as two year warranty. If sold separately, IBM charges $1,250 for the computer and $250 for the warranty. In a promotional offer, IBM sells the computer and the warranty as one package for $1,200. On 1/1/2020, IBM sold and delivered 100 packages for cash. Required: A. How many performance obligations does IBM assume for every package? B. What is the allocated price for the computer and the warranty? C. Make the journal entry to record the above sale on 1/1/2020. IBM manufactures and sells desktop computers as well as two year warranty. If sold separately, IBM charges $1,250 for the computer and $250 for the warranty. In a promotional offer, IBM sells the computer and the warranty as one package for $1,200. On 1/1/2020, IBM sold and delivered 100 packages for cash. Required: A. How many performance obligations does IBM assume for every package? B. What is the allocated price for the computer and the warranty? C. Make the journal entry to record the above sale on 1/1/2020.
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Managerial Accounting Decision Making and Motivating Performance
ISBN: 978-0137024872
1st edition
Authors: Srikant M. Datar, Madhav V. Rajan
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