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please explain calculations Skysong Company sells goods that cost $ 442,500 to Norris Company for $ 669,000 on January 2, 2020. The sales price includes
please explain calculations
Skysong Company sells goods that cost $ 442,500 to Norris Company for $ 669,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $ 63,000. The fair value of the goods is $ 606,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete. Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 Accounts Receivable 669,000 Sales Revenue 606,000 Unearned Service Revenue 63000 (To record sales on account) Jan. 2, 2020 Cost of Goods Sold 442,500 Inventory 442500 (To record cost of goods sold) Skysong prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Skysong recognize related to its sale to Norris? First Quarter Sales Revenue $ 637,500Step by Step Solution
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