Problems 32 & 33

the entry in June 2020 to record Furniture Manufacturer Inc.'s sales revenue and cost of sales now as- suming that $500,000 cash is collected this month. The advertising fee will be paid next month to the customer. Seven Flags Park offers a promotion for free parki t is park plus ng to customers who purchase a one day pass to enjoy thrill rides Brief Exercise 7-32 two meal vouchers for a total of $75. Seven Flags sells each of the contract promises separately Price LOS for the following standalone prices: Day pass $45, Parking $20, and Two meal allocated transaction price of the day pass, two meals, and parking for Seven Flags Allocating a Transaction vouchers $30. Compute the assuming the sale of 500 promotional packages on July 15, 2020. Cloting Warehouse Inc. sells men's formal business suits. Clothing Warehouse offers complimentary custom Brief Exercise 7-3 fiting for a purchase made in the store for a business suit with a minimum price of $300. Providing the business a suit and providing the fitting service are considered separate performance obligations. Compute the allocated Market Assessment and transaction price of a business suit and a custom fitting for the following two separate cases. a. Use the adjusted market assessment approach and assume that Clothing Warehouse Inc.'s direct competitor plus a Price Using Adjusted Using Expected Cost Margin LO5 prices its fitting services for $60 per business suit. The business suit has a standalone selling price of $300. b. Use the expected cost plus a margin approach and assume that the labor and material charges for a fitting are $40 while the typical margin above cost is 35%. The business suit has a standalone selling price of $300. Software Inc. sells access to a license for accounting software packages for small to mid-sized companies. Cus- Brief tomers can choose two different options. For the first option, customers can choose to purchase the software Revenue and to be downloaded on the customer's personal computer for S Exercise 7-34 Classilying License 375. Although Software Inc. provides occasional Describing Revenue Recognition LO6