13. Bella Pool Company sells prefabricated pools that cost $100,000 to customers for $180,000. The sales price includes an installation fee, which is valued at $25,000. The fair value of the pool is $160,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation is Answer Calculations a. $155,676 and $24,324 respectively b. $160,000 and $25,000 respectively c. $180,000 and $25,000 respectively d. $138,378 and $21,622 respectively Answer 13: 14. On April 1, 2019, Drapes Farm entered into a contract to buy a $86,000 harvester from John Deere. The contract required Drapes Farm to pay $86,000 in advance on April 1, 2019. The harvester (cost of $59,000) was delivered on April 30, 2019. The journal entry to record the delivery of the equipment includes a Answer Calculations/JE: a. debit to Unearned Sales Revenue for $86,000 b. credit to Unearned Sales Revenue for $86,000 c. credit to Cost of Goods Sold for $59,000. d. debit to Inventory for $59,000. Answer 14: 15. Jackson Vita sells vitamins to customers with an unconditional right of return if they are not satisfied. The right of returns extends 60 days. On February 10, 2019, a customer purchases $3,000 of products (cost $1,500). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the return of $200 of merchandise includes a Answer Calculations/JE: credit to Returned Inventory for $600 b. credit to Accounts Receivable for $200. debit to Cost of Goods Sold for $200 d. debit to Accounts Receivable for $200 a. c. Answer 15