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2- Brigette Corporation sells refurbished photocopiers to Canadian-based businesses. Brigette also provides installation and and on-going maintenance services for a wide variety of photocopiers. On
2- Brigette Corporation sells refurbished photocopiers to Canadian-based businesses. Brigette also provides installation and and on-going maintenance services for a wide variety of photocopiers. On October 5, 2023, Brigette sells a photocopier to Kieso Industries, which it will also install for an all-inclusive price. Photocopier sales and installation services are considered to be separate performance obligations. In accordance with the terms of the contract, Kieso is required to pay a percentage of the contract price on October 5, 2023, with the balance of the contract price due upon completion of the installation. Details regarding the sales contract follow: Fair value of the photocopier $ 17,085 Fair value of the installation service $ 1 ,025 All-inclusive contract price in accordance with terms of the contract $ 17,205 Cost of the photocopier to Brigette Corporation $ 11,447 Percentage of contract price paid by Kieso on October 5, 2023 31% Brigette delivered the photocopier to Kieso on October 22, 2023. Brigette did not install the photocopier until November 3, 2023. Kieso paid the balance of the contract price on the date of installation. Brigette Corporation follows IFRS and prepares its financial statements on a monthly basis. Required: 1- Determine the appropriate allocation of the selling price to the performance obligations. Round final amounts to the nearest dollar. (2 marks) 2- Prepare the journal entries required for this revenue arrangement for Brigette Corporation on each of the following dates: October 5, 2023 (1 mark) October 22, 2023 (3 marks) November 3, 2023 (2 marks)
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