Answer:
Journal entries
Explanation:
1. There are two performance obligations in this contract
2. The journal entry is as follows
Cash Dr $95,000
To Unearned sales revenue $93,100
To Unearned discount sales revenue $1,900
(Being the unearned revenue is recorded)
The computation of the unearned discount sales revenue is shown below:
= $95,000 × $2,000 ÷ $100,000
= $1,900
The $2,000 is come from
= $20,000 ×(25% - 5%) × 50%
= $2,000
And, the $100,000 is come from i.e sales revenue including discount
= $98,000 + ($20,000 × 20% × 50%)
=$100,000
And, $98,000 is come from i.e sales revenue
= 5,000 units × $19.60 per unit
= $98,000
3. And, the journal entry is as follows
Cash Dr $95,000
To Unearned sales revenue $95,000
(Being the unearned sales revenue is recorded)