problem 63
On March 18, 2020, Kudos Corporation sells snack products to a retail warchouse $50,000 (cost of $30,000). The contract includes an obligation for the warchouse club club chain in the amouns Exercise 7-62 Recording a Payment by Seller to Customer L04, 6 campaigns for the snack products in exchange for $4,000 cash from Kudos Corporation to nun certain on the contenact date. The party is $4,000 comparable price for this type of advertising campaign to be conducted by a third Required a. Prepare Kudos' journal entry on March 18, 2020, for the sale of merchandise and the services. uct to a customer (cost of $30,000) and has b. Assume instead that Kudos sold $50,000 of produ plays. KudPR-pay will pay the the customer $1,000 in slotting fees for preferential product placement in dis 20, for the sale of the 1,000 fee on April 30, 2020. Prepare Kudos' journal entry on March 18, 2020, for prodac and on April 30, 2020, for the payment of the slotting fee. For the month of June, Forde Auto Manufacturer sells a 4-door sedan to a dealer for $30.00, of the maintenance contract is $2,000. In addition, Forde offered a $500 cash incentive ( to the dealer if the vehicle was purchased in the first week of June 2020. Required a. How should the transaction price be allocated among the performance obligation(s) for sales made in the which inclod selling price of the vehicle is $30,000 and the standalone slling price per vehicle purchasod Exercise 7-63 Price to Perlormancehrears of maintenance. The standalone Sales LO5,6 first week of June? Round to four decimal places. b. Prepare Forde's journal entry to record the sale of vehicles for cash, assuming that dealers purchased 20v hicles during the first week of June 2020. (lgnore the cost of sales entries.) Exercise 7-64 Maximum Inc. (retailer) has a loyalty program that rewards its customers one point per S1 spent. Points are re Allocating Transaction deemable for $0.20 off future purchases. A customer purchases products (cost of $140) for cash at the usual se Price to P ing price of $200 and eams 200 points redeemable for $40 off future purchases of goods or services. The rtu expects redemption of 180 points or 90% of points earned Required a. How should the transaction price be allocated among the performance obligation(s)? Round to the nears b. Sales LO5,6 full percentage point. Prepare Maximum's journal entry to record sale of $200 to the customer where the loyalty points. earned 20 Exercise 7-65 Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new ve customer will receive a free annual maintenance contract for one year from the date of purchase. Ih Transactionc
