Question
Allocate Transaction Price, Discounts, Time Value. Chef Grill Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio
Allocate Transaction Price, Discounts, Time Value.
Chef Grill Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations.
Instructions
Respond to the requirements related to the following independent revenue arrangements for Chef Grill products and services.
- A-
Chef Grill offers contract MG100 which is comprised of a free-standing gas grill for small patio use plus installation to a customers gas line for a total price 7000 AED. On a standalone basis, the grill sells for 6000 AED (cost 3500 AED), and Chef Grill estimates that the fair value of the installation service (based on cost-plus estimation) is 1500 AED. Chef Grill signed 15 MG100 contracts on May 30, 2021, and customers paid the contract price in cash. The grills were delivered and installed on June 15, 2021. Prepare journal entries for Chef Grill for MG100 in May and June 2021.
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Modern Internal Auditing Continuing Professional Education CPE Edition
Authors: Robert M. Atkisson, Victor Z. Brink, Herbert N. Witt
1st Edition
0471818828, 978-0471818823
