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Required information CP6-4 (Algo) Recording Journal Entry after Allocating Transaction Price to Performance Obligations [LO 6.5] [The following information applies to the questions displayed below.]

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Required information CP6-4 (Algo) Recording Journal Entry after Allocating Transaction Price to Performance Obligations [LO 6.5] [The following information applies to the questions displayed below.] Great American Olichange (GAO) sells a combined oll change service and parts package for $32. A customer who supplies the parts (oll and filter) is charged $22 for only the service, whereas a customer who buys only the oll and filter (for do-lt-yourself use) is charged $22 for the parts. The parts cost GAO $16. CP6-4 (Algo) Part 1 Required: 1. Determine the dollar amount of revenue from the oll change service versus the sale of parts for each combined oll change package. TiP: To calculate the percentage of the combined package that relates to the service, divide the stand-aione selling price of the service by the combined stand-alone selling prices of both the service and parts. Required Information CP6-4 (Algo) Recording Journal Entry after Allocating Transaction Price to Performance Obligations [LO 6-5] [The following information applies to the questions displayed below] Great American Ollchange (GAO) sells a combined oil change service and parts package for $32. A customer who supplies the parts (oil and filter) is charged $22 for only the service, whereas a customer who buys only the oil and filter (for do-lt-yourself use) is charged $22 for the parts. The parts cost GAO $16. P6-4 (Algo) Part 2 Prepare the joumal entry GAO would record if GAO provides a combined oll change service and parts package to a customer on October 7. Assume GAO distinguishes Service Revenue from Sales Revenue arising from the sale of parts, it uses a perpetual Inventory system for recording the cost of goods sold, and it collects cash the day the oll change is performed. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the flist account fleld.) Journal entry worksheet Note: Enter debits before credits

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