1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
givi [52]
3 years ago
15

On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Ger

akos sells the same software without technical support for $60,000. It does not sell technical support separately. Gerakos uses the residual method to allocate the transaction price.
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

The question requirement relates to the amount of revenue to be recognized in year 2019 and 2020 respectively.

2019 Revenue is $66,667

2020 Revenue $13,333

Explanation:

The total price of $80,000 is split into $60,000 which is standalone  price of the software and the balance relates of $20,000($80,000-$60,000) relates to technical support.

It is important to note that the selling price of software of $60,000 is due for recognition as revenue, while technical support fee of $20000 should be recognized on a progress basis,for each month the technical support has been rendered.

2019 Revenue

Software                                                 $60,000

Technical support($20000*2/6)             $6,667

Total                                                         $66,667

2020 Revenue

($80,000-$66,667)                                  $13,333

You might be interested in
Listed below are certain costs or discounts incurred in the purchase or construction of new plant assets.1. Indicate whether the
TEA [102]

Answer

The answer and procedures of the exercise are attached in a the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

4 0
3 years ago
The most recurring item on a data list
Olin [163]
Make use of Python Counter which returns count of each element in the list.
8 0
2 years ago
You think that in 15 years it will cost $214,000 to provide your child with a 4-year collge education. Will you have enough if y
prisoha [69]

Answer:

You will not have enough.

Explanation:

The rate of the investment is compounded, so the value at year 1, will be the value at year 0, increased in a 4%. Then, the value at year 2 will be the value at year 1, increased in other 4%, that's equal to the value at year 0 increased twice at 4%.

So, the formula to calculating the value at year 15 is 75,000*(1.04)^15 = 135,070.63. THen, it will not be enough. You have to invest at least 214,000/1.04^15 = 118,826.20 at year 0, at a rate of 4%.

8 0
3 years ago
Someone who likes building, designing, or creating things probably has a(n)
Afina-wow [57]
It is an architect because they love to build things and create things as well  <span />
6 0
3 years ago
Read 2 more answers
Which of the following statements explains what information bank customers will most typically receive when securing loans?
SIZIF [17.4K]

Answer:

<u><em>A.</em></u>

<u><em>The loan will be set for a given range, and the bank will establish a rigid payment plan</em></u>

Explanation:

Hope this helps:)

7 0
3 years ago
Other questions:
  • Doreen is a cosmetic sales person. her commission rate is 13 1/2%. if her monthly sales was $4,230.00 what was her monthly commi
    9·1 answer
  • What does sfb allowed mean in real estate?
    8·1 answer
  • Elen holds 1,000 shares of fizbo inc. stock that she purchased 11 months ago. the stock has done very well and has appreciated $
    10·1 answer
  • Acme Manufacturing Company’s controller was classifying costs for the most recent financial statement period. Which of the follo
    7·1 answer
  • The ready availability of so much information catches some managers in this dilemma. 1. data overload 2. analysis paralysis 3. i
    5·1 answer
  • Greg is hired into the marketing services department of a full-service advertising agency. His job profile includes gathering in
    9·1 answer
  • In its first year of business, Borden Corporation had sales of $2,040,000 and cost of goods sold of $1,220,000. Borden expects r
    9·1 answer
  • China Imports Inc. sold 10,000 units in May. Per unit selling price and variable expense were $23 and $15, respectively. Fixed e
    10·1 answer
  • Which of the market structures has unrestricted entry and exit, many sellers of the product and some ability to set the price?a.
    6·1 answer
  • During which period does the fed appear to be most anti-inflation? explain your answer.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!