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Please let me know if I did this right or correct it if I did something wrong. Only possible journal entries are cash, deferred revenue,
Please let me know if I did this right or correct it if I did something wrong. Only possible journal entries are cash, deferred revenue, and sales revenue.
Problem 10 [CPA] Niwot Co. sells products and service plans both separately and bundled together. Willy Loman, a Niwot Co. salesman, sold a Widgetron in year 5 for $1,000, its normal price, and told the customer he'd "throw in the 3-year service plan for free," which the company normally sells for an additional $150. The product was delivered and customer payment was made on March 1, 2020. Required Determine the journal entry the seller should make to record the sale on March 1, 2020. Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Credit Entry on March 1, 2020: Account Cash Deferred Revenue Sales Revenue Debit $1,000 1 1 $150 $850 1Step by Step Solution
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