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The Appliance Store is an experienced home appliance dealer. The Store offers a number of services together with the home appliances that it sells. Assume

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The Appliance Store is an experienced home appliance dealer. The Store offers a number of services together with the home appliances that it sells. Assume that Appliance Store sells dishwashers on a standalone basis. Appliance Store also sells installation services and maintenance services for 12 months for the dishwashers after the installation was completed. However, Appliance Store does not offer installation or maintenance services to customers who buy dishwashers from other vendors. Pricing for dishwashers is as follows. In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at \$240. Additionally, the incremental amount charged by Appliance Store for installation approximates the amount charged by independent third parties. Dishwashers are sold subject to a general right of return. If a customer purchases a dishwasher with installation and/or maintenance services, in the event ApplAance Store does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the foe that exceeds $1,140 Assume that a customer purchases with cash a dishwasher with both installation and maintenance services for $1,450 on Dec 1, 20X1. On Jan 1,20X2, the dishwasher was delivered and installed. The Appliance Store's accounting policy is to recognize the maintenance service revenue on a monthly basis after the delivery and installation service is completed. Required: 1) Based on its experience, Appliance Store believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately. Identify the separate performance obligations related to the Appliance Store revenue arrangement. 2) Indicate the amount of revenue that should be allocated to the performance obligations identified in 1). 3) Prepare the necessary journal entry for the Appliance Store on Dec 1, 20X1, Jan I, 20X2, and Jan 31,202

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