Carla Vista delivers the equipment on June $1,2025,$ and completes the installation of the equipment on September $30,2025.$ The equipment has a useful life of $10$ years. Assuma that the equipment and the installation are two discinct performance obl aations which should be accounted for ssparately.

Assumina Carla Vista does not have markat data with which to determine the standalone sellina price of the inctallation servecs As a result, an expeted cost plus margin approach is used. The cost of installation is $$44\mathrm{.}250$; Carla Viste prices these services with a $20\text{'}$ marsin ralative to cost$.$

$($a$)$

Corract Answar

Your answer is correct. calculatians. Round final arowers to $0$ decimal places, $)$

Equipmant

$958455$

Inatallation $

eTextbook and Medla

Solution

List of Accounts

Attempts: $3$ of $3$ used

$($b$)$

Prepare the journal entries for Carla Vista for this revenue arrangsment on June $1,2025,$ asauming Carla Vista receives payment When installation is completad. Credit account titles one outarnaticoly indented when the amount is entered. Do not indent manually if fincl arswes to $0$ decinal ploces es $5,275$

Date

Account Titles and Explanation

Debit

c$.$

$($To tecord sale$)$

a