Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Video Planet ( VP ) sells a big screen TV package consisting of a 6 0 - inch plasma TV , a universal remote, and

image text in transcribed
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,550, sells the remote separately for $150, and offers the installation service separately for $300. The entire package sells for $2,900.
Required:
How much revenue would be allocated to the TV, the remote, and the installation service?
Note: Do not round intermediate calculations.
\table[[Item Description,\table[[Allocated],[Revenue]]],[TV,],[Remote,],[Installation,],[Total evenue,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater

13th Edition

0133791009, 978-0133791006

More Books

Students also viewed these Accounting questions

Question

prepare a cash flow statement.

Answered: 1 week ago

Question

explain the software of grind computing

Answered: 1 week ago

Question

What is the IT role in Adobe business and alignment

Answered: 1 week ago