allocating transaction price to performance obligations and recording sales

Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealenhip ine markets and seili vehicles to retal customers. Nang with a new vehide purchase, a civtemer wel receive a free annwai muintenance contract for one year from che dace of purchase. The standalone seling price of a wehide is $36,000 and the standalone seling price for the annual maintenance coratact is $734 Durirg 0 ctaber, Value Dealership inc, sold 36 vehides for $36.300 per vehicle each whth a free annual maintenance contract. - Note: Cary al decimak in calculations round the final answer to the nearest dollar. - Note: if a lise of the jourhal entry isnt required for the trantaction select "NAN as the accouns name and leave the Dr. and Cr. ansimer blank (rerol a. Determine how the mansaction price should be allocated among the performance oblgatontu and record the journal entry in Gctober for value Dealershiph sale of 36 velicies with the ansoclated maintenance contracts to contomers. lenore the cost entry. b Assumn the same information above excepe that the standalone selling price of the annual maintenance contract is not known because this was the first time Value Dealership offered the service. value Dealership is uncertain as to what senices, on average, a customer will take advantage of during the year of the contract. The Dealership researched competitar prices and determined that the avecoge selling price for a mainterance service contract is 5768 . Determine how the transaction price should be alocated among the performance obligationas and record the joumal entry in October for Value Dealerships saie of 36 vehicles to its customers. lonoce the cost entry. C. Asxume the same information rarlginal icenario) above eicept that the standalone selling ponce of the annual maintenance contact is not known because this was the first time Value Dealenhig otieied the seevice. Value Dealership determined that the cost of the annual contract is 5534 for the year and the expected profit margin an the service contract is 35W. Detormine hew the transactoon price should be allocated amons the performance oblieationtsy and recerd the journal entry in October for value Dealershipls sale of J6 vehicles to its customers. ifncre the cont entry