2 Best Buy Co. Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by Best Buy staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. Best Buy concludes that the TV, remote, and installation service are separate performance obligations. Best Buy sells the 60-inch TV separately for $1,575, sells the remote separately for $210, and offers the installation service separately for $315. The entire package sells for $2,000. Required: Please answer: how much revenue would be allocated to the TV, the remote, and the installation service by Best Buy? Note: Do not round Intermediate calculations. Item Description TV Remote Installation Total revenue Allocated Revenue $ 0

2 Best Buy Co. Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by Best Buy staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. Best Buy concludes that the TV, remote, and installation service are separate performance obligations. Best Buy sells the 60-inch TV separately for $1,575, sells the remote separately for $210, and offers the installation service separately for $315. The entire package sells for $2,000. Required: Please answer: how much revenue would be allocated to the TV, the remote, and the installation service by Best Buy? Note: Do not round Intermediate calculations. Item Description TV Remote Installation Total revenue Allocated Revenue $ 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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