USE THE FOLLOWING FACT S FOR #15 -16: Quick Seal Corporation manufactures HVAC products and has the following information: Customer Jamison Amount of HVAC piping ordered by customer (sales price) 56,900 Amount that the product cost to manufacture 22,400 Date goods are ordered 12/19/X7 Date of delivery to customer 12/28/X7 Customer pays in full on Current year end 1/13/X8 12/31/X7 Assume all questions pertain to the current year end. Assume selling company uses perpetual inventory system. 15.) At date of delivery the following journal entry or entries are required: A.) Accounts Receivable (asset) 56,900 Sales Revenue (Gain) 56,900 AND Cost of Goods Sold (expense) 22,400 Inventory 22,400 B.) Accounts Receivable (asset) 56,900 Sales Revenue (Revenue) 56,900 AND Cost of Goods Sold (expense) 22,400 22,400 Inventory C.) Cash (asset) 56,900 56,900 Sales Revenue (Revenue) AND 22,400 Cost of Goods Sold (expense) 22,400 Inventory 34,500 D.) Accounts Receivable (asset) 34,500 Sales Revenue (Revenue) Page 9 of 11 16.) The entry that is required on the date the customer pays in full has what impact on the CASH account for the CURRENT year end? A.) Increase B.) Decrease C.) No impact 17.) REVENUE: Inflows or other enhancements of assets of an entity or settlement of its liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or other activities that: A.) result from peripheral or incidental transactions B.) constitute the entity's ongoing major or central operations C.) have no relationship to operations central or peripheral D.) none of the above 18.) A good or service is distinct if it is: A.) Capable of being distinct. That is the customer could use the good or service on its own or in combination with other goods or services it could obtain elsewhere; AND Separately identifiable from other goods or services in the contract. The good or service is distinct in the context of the contract because is not highly interrelated with other goods or services in the contract B.) Capable of being distinct. That is the customer could use the good or service on its own or in combination with other goods or services it could obtain elsewhere; OR Separately identifiable from other goods or services in the contract. The good or service is distinct in the context of the contract because is not highly interrelated with other goods or services in the contract. C.) The seller can sell it on its own D.) It is so interrelated to the other component that the purchaser would want neither component by itself. Page 10 of 11