Question
Bucks Inc. manufactures and sells commercial appliances. It also provides installation and maintenance services. In 2021, Bucks Inc. sold appliances to Bulls Inc. at $2,200,
Bucks Inc. manufactures and sells commercial appliances. It also provides installation and maintenance services. In 2021, Bucks Inc. sold appliances to Bulls Inc. at $2,200, and Bulls Inc. chose not to have the company install the appliances. Instead, Bucks Inc. promised to provide maintenance services for three years, starting from the date of delivery. The fair values of appliances and maintenance services are estimated to be $1,980 and $550, respectively. Upon delivery of the product on July 1, Bulls Inc. paid the purchase price in full. What is the total amount of sales revenue that should be recorded in 2021? Bucks Inc. follows IFRS and uses calendar year.
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