Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DGA Associates, Incorporated sells computer workstations designed for architects. In 2024 , it sold 120 workstations for $367,000. For each workstation sold, DGA distributed a

image text in transcribed
image text in transcribed
DGA Associates, Incorporated sells computer workstations designed for architects. In 2024 , it sold 120 workstations for $367,000. For each workstation sold, DGA distributed a 30% discount coupon for any additional future purchases made in the next 12 months. Based on historical experience, DGA expects that approximately 25% of the coupons will be utilized, and the goods purchased with the coupons would normally sell for $385 Required: (a) How many performance obligations are in a contract to purchase a computer workstation? (b) Prepare a joumal entry to record revenue for the sale of 120 computer workstations, assuming that DGA uses the residual method to estimate the stand-alone selling price of the workstations sold without the discount coupon. Complete this question by entering your answers in the tabs below. How many performance obligations are in a contract to purchase a computer workstation? DGA Associates, Incorporated sells computer workstations designed for architects. In 2024 , it sold 120 workstations for $367,000. For each workstation sold, DGA distributed a 30% discount coupon for any additional future purchases made in the next 12 months. Based on historical experience, DGA expects that approximately 25% of the coupons will be utilized, and the goods purchased with the coupons would normally sell for $385. Required: (a) How many performance obligations are in a contract to purchase a computer workstation? (b) Prepare a joumal entry to record revenue for the sale of 120 computer workstations, assuming that DGA uses the residual method to estimate the stand-alone selling price of the workstations sold without the discount coupon. Complete this question by entering your answers in the tabs below. Prepare a joumal entry to record revenue for the sale of 120 computer workstations, assuming that DGA uses the residual method to estimate the stand-alone selling price of the workstations sold without the discount coupon. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Show lessa Journal entry worksheet Record the revenue for the sale of 120 computer workstations. Notet Enter debith before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An International Approach

Authors: Wally Smieliauskas, Amy Kwan, Kathleen Cogliano, Catherine Barrette

8th Canadian Edition

1259451275, 978-1259451270

More Books

Students also viewed these Accounting questions