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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

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brilliants [131]

Explanation:

The journal entries are shown below:

a. Bad debt expense A/c Dr  $13,931

                To Allowance for doubtful debts $13,931

(Being bad debt expense is recorded)

It is computed below:

= $421,300 × 4% - $2,921

= $13,931

b. a. Bad debt expense A/c Dr  $17,722

                To Allowance for doubtful debts $17,722

(Being bad debt expense is recorded)

It is computed below:

= $421,300 × 4% + $870

= $17,722

5 0
3 years ago
Jackson Company has two service departments (S1 and S2) and two producing departments (A and B). Department S1 serves Department
rusak2 [61]

Answer:

The total amount of cost that will be allocated from S2 to Department A is $32,200.

Explanation:

This can be calculated as follows:

Cost allocated from Department S1 to Department S2 = Direct department costs of Department S1 * Percentage of service to Department S2 = $200,000 * 15% = $30,000

Total Direct department costs for S2 = Direct department costs for S2 + Cost allocated from Department S1 to Department S2 = $16,000 + $30,000 = $46,000

Cost allocated from Department S2 to Department SA = Total direct department costs for S2 * Percentage of service to Department A = $46,000 * 70% = $32,200

Therefore, the total amount of cost that will be allocated from S2 to Department A is $32,200.

3 0
2 years ago
Olga is the sales rep for ATV Communication Systems. She wants to bid on the RFP issued by Manitoba University for distance lear
Dmitriy789 [7]

Answer:

B. any experience with the product they wish to purchase

Explanation:

Since Manitoba University is completely new and that it do not have any information about the Communication system as of ATV.

As she wants to acquire the Manitoba bid she needs to provide thorough information and that the university is completely new, accordingly there is a clear demonstration required, for the service.

The university do not know the facts and is dealing in these things first time and because of that it is necessary.

Thus, correct option is statement B.

7 0
3 years ago
Lean practices Include those which are designed to ellminate waste while still satistying the customer. Examples of lean practic
zubka84 [21]

Answer:

The correct answer is letter "A", "C", and "E": continuous improvement; just-in-time manufacturing; total quality management

Explanation:

Lean practices involve several activities companies can engage to reduce inefficiency at work. Organizations achieved this by eliminating wasteful practices among employees to improve the output quality and keep consumers preference, thus making a profit. <em>That improvement must be continuous and imply managers will seek constantly perfection</em>.  

For instance, manufacturing companies can eliminate waste by keeping tight deadlines and <em>delivering their products just in the time</em> the suppliers or final consumers expect.

4 0
3 years ago
Inc. (WFI). After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accoun
Montano1993 [528]

Answer:

On the transfer of the building,

Appreciation of building = FMV - Adjusted Basis

                                        = $50,000 - $10,000

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WFI has taxable transaction and gain recognition of $40,000.

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Appreciation of land = FMV - Adjusted Basis

                                  = $150,000 - $90,000

                                  = $60,000

WFI has taxable transaction and gain recognition of $60,000.

5 0
3 years ago
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