PA$6-3($Algo$)$ Part $1$

Required:

Compute Net Sales and Gross Profit for Ramos Hair Styling.

Net Sales

Gross Profit $!$

Required information

PA$6-4($Algo$)$ Recording Journal Entry after Allocating Transaction Price to Performance Obligations $[$LO $6-5]$

$[$The following information applies to the questions displayed below.$]$

Hospital Equipment Company $($HEC$)$ acquired several fMRI machines for its inventory at a cost of $\backslash$$$2,700$ per machine. HEC usually sells these machines to hospitals at a price of $\backslash (\backslash$$ $6,240\backslash ).$ HEC also separately sells $12$ months of training and repair services for fMRI machines for $\backslash (\backslash$$ $1,560\backslash ).$ HEC is paid $\backslash (\backslash$$ $6,240\backslash )$ cash on November $30$ for the sale of an fMRI machine delivered on December $1.$ HEC sold the machine at its regular price but included one year of free training and repair service.

PA$6-4($Algo$)$ Part $1$

Required:

$1.$ For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair service.