Question: On Oct 31 st , Multitool Inc. receives a purchase order for the 45 tools, 6 months of service, and 30 pounds of grease. The

On Oct 31^st, Multitool Inc. receives a purchase order for the 45 tools, 6 months of service, and 30 pounds of grease. The customer paid in cash. The tools were delivered on the same day, and the grease one week later. The service agreement began November 1st.

The retail prices for the items are as follows:

Tools $16 / piece

Service $20 /month

Grease $4 / lb.

Provide the transactional journal entries associated with this sale for Mochi Corp on the date of the transaction.

How much sales revenue does Multitool recognize on Oct 31^st?

How much deferred revenue does Multitool recognize on Oct 31^st?

How much Service revenue does Multitool recognize on Dec 31^st, assuming that Multitool prepares financial statements once every quarter?

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