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Arturiano [62]
3 years ago
13

Once a new fashion becomes popular with the lower classes, what would the upper classes do as per the Traditional Adoption theor

y?
A.
adopt the fashion
B.
move away from the fashion
C.
upgrade the fashion
D.
improve the fashion to suit their styles
Business
1 answer:
photoshop1234 [79]3 years ago
3 0
B. Move away from the fashion
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Sarjit Systems sold software to a customer for $176,000. As part of the contract, Sarjit promises to provide "free" technical su
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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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Answer:

A) By product pricing

Explanation:

If you are able to sell your companies by products it is a great way to make more money and to reduce costs. Imagine if the cheese factories needed to throw away all that brine. They would need to develop some waste disposal facility which obviously costs money to build and operate. Instead they are lowering their costs by selling it and at the same time are getting more money. They would probably even give it away for free if no one was willing to pay for it.

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