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Pharoah Company sells goods that cost $$487,500$ to Runner Company for $$586,500$ on January $2,2025$ on account. The sales price includes an installation fee, which is valued at $$57,000.$ The fair value of the goods is $$529,500.$ The installation is considered a separate performance obligation and is expected to take $6$ months to complete.

$($a$)$

Your answer is correct.

Prepare the journal entries $($if any$)$ to record the sale on January $2,2025.($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $2,2025$

Accounts Receivable

Sales Revenue

$529,500$

$$

$57,000$

$($To record sales on account$)$

Jan. $2,2025$

$$

$$

$$

$$

$($To record cost of goods sold$)$

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List of Accounts

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$5\%$ score reduction after attempt $2$

$($b$)$

Pharoah prepares an income statement for the first quarter of $2025,$ ending on March $31,2025($installation was completed on June $18,2025).$ How much revenue should Pharoah recognize related to its sale to Runner?

First Quarter

Revenue $ $$

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List of Accounts

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$5\%$ score reduction after attempt $2$

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