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
ANTONII [103]
3 years ago
13

Sarjit Systems sold software to a customer for $176,000. As part of the contract, Sarjit promises to provide "free" technical su

pport over the next six months. Sarjit sells the same software without technical support for $153,000 and a stand-alone six-month technical support contract for $27,000, so these products would sell for $180,000 if sold separately. Prepare Sarjit’s journal entry to record the sale of the software. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
My name is Ann [436]3 years ago
7 0

Answer:

DR Cash ..............................................................$ 176,000

CR Sales Revenue................................................................$149,600

CR Deferred Revenue..........................................................$26,400

Explanation:

Revenue should only be recorded when earned and as the 6 month technical support can be sold separately, it is revenue that has not be earned yet as the 6 months have not elapsed. This will therefore need to be recorded as Deferred revenue.

Sold alone, the revenue is more than when they are sold together so use the standalone price to find out the revenue when sold together by proportionality.

Sales revenue = 153,000/180,000 * 176,000

= $149,600

Deferred Revenue = 27,000/180,000 * 176,000

= $26,400

You might be interested in
_____ exists because people's wants for goods and services are greater than the number of products that can be made from availab
seropon [69]
Scarcity exists because people's wants for goods and services are greater than the number of products that can be made from available resources
3 0
3 years ago
The owner of Hanson Manufacturing is considering the idea of establishing a smoke-free workplace and instigating an incentive pl
klemol [59]

Answer:

$2000

Explanation:

According to CDC research, each employee who smokes costs his or her organization approximately $2000 per year due to reasons such as;

• Smoke breaks at work which accumulate to reduce the amount of time spent doing productive work.

• Health related issues resulting from smoking that may cost the organization money or cause the employee to be absent from work (research shows that smokers are absent from work more than non smokers.

Therefore, for each smoker who quits smoking, Hanson Manufacturing will gain approximately $2000 in productivity.

7 0
3 years ago
On December 31, management had determined that it would not be able to collect the $1,200 owed to it by one of its customers. On
mario62 [17]

Answer:

a. Journal entries to record the reinstatement of the account receivable

Account Title and Description                           Debit     Credit

Account receivable account                                $600

       Allowance for Doubtful Accounts account                $600

(Reinstatement of the account receivable)

b. Journal entries to record the receipt of cash

Account Title and Description             Debit     Credit

Bank Account                                        $600

        Account receivable account                        $600

(Receipt of cash)

5 0
3 years ago
You're considering an investment that you expect will produce an 8% return next year, and you expect that your real rate of retu
sveta [45]

Answer:

Explanation:

Using Fisher equation <u><em>(Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) </em></u>which goes like this

1+i=(1+r)(1+\pi _{e} )

where

i = nominal interest rate\\e = real interest rate\\\pi _{e}  = expected  inflation rate

Inflation = (1+0.08) / (1+0.06) - 1 = 1.88% (Could be approximated as 2%)

7 0
3 years ago
Helpful in assessing the risk of lending to investors for particular projects, which of the following calculations measures the
Degger [83]

Answer:

C. Financial risk ratios

Explanation:

Financial risk ratios are calculated to measure the financial risk of the company. It measure the financial capability of an entity. For lending purpose the lender has to ensure that is the borrower able to repay the borrowed amount and interest on it. The lender need to estimate the capability of the borrower for payment of loan back. These ratio care Debt to capital ratio, Coverage ratio etc.  

7 0
3 years ago
Read 2 more answers
Other questions:
  • Even though many ballparks practice price discrimination between adults and children in selling tickets, such discrimination is
    14·2 answers
  • Business writing is more forceful if it uses active-voice verbs. Revise the following sentences so that verbs are in the active
    6·1 answer
  • Acme Home Lending offers home equity loans up to 80% of the home value for its customers. If Sally Johnson has a home valued at
    13·1 answer
  • This term refers to the length of a training session:
    13·1 answer
  • What does an exchange rate tell you?
    15·2 answers
  • Carl jung's view of extroverted and introverted types serves as a basis of the ________.
    11·1 answer
  • What would happen to the buying power of your investment after one year if your rate of return was 8% and the rate of inflation
    13·1 answer
  • Which of the following is an outcome of the General Agreement on Tariffs and Trades​ (GATT) and created global rules of trade be
    11·1 answer
  • Olivia deposited $800 at her local credit union in a savings account at the rate of 6.2% paid as simple interest. She will earn
    12·1 answer
  • Look up toga and find out
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!