Question
On April 3, Cleanit Inc. sold 10 washing machines and 10 dryers for a total price of $18,000 on account to Prairie Appliances Ltd., terms
On April 3, Cleanit Inc. sold 10 washing machines and 10 dryers for a total price of $18,000 on account to Prairie Appliances Ltd., terms n/30. Clean it has not experienced any material returns in the past. Because Prairie purchased 10 washers and 10 dryers at once, Cleanit provided discounted pricing. Normally, Cleanit sells washing machines for $1,200 and dryers for $800. The washing machines cost Cleanit $750 each, while the dryers cost $525. On April 6, Cleanit delivered the washing machines to the customers warehouse. The dryers were back-ordered and were not delivered until April 25. On April 30, Cleanit received Prairies payment for the washing machines. Record the transactions on the books of both companies, assuming a perpetual inventory system is used.
Could I please get a step-by-step understanding of how the answer is derived?
could I know how to derive 10,800 and 7,200 (allocation of contract price)??
Cleanit Inc. (Seller) Apr. 3 1 No transaction to record, as neither performance obligation has been satisfiedStep by Step Solution
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