Keep-U-Safe Systems (KSS) sells security solutions to large corporations. KSS offers electronic security systems for buildings (complete with cameras and keypad entry), perimeter security fencing (both physical and electronic) and offers an optional 24-hour security monitoring service. The solutions can be purchased individually, or as a package. The security systems and security fencing are sold as completed items (installation included). The security monitoring consists of two years of monitoring by KSS's call centre, who alert businesses in the event that an alarm is triggered, as well as dispatch emergency personnel if nobody can be reached. Each sales order is customized to the needs of the customer. On September 30, 2021, KSS sold a security solution that consisted of a building security system, fencing for a warehouse location, and the 24-hour security monitoring service. The solution was sold to Charleston Manufacturers for a price of $38,000, with payment due on November 1, 2021. Installation of the system and fencing was completed on November 1, and the monitoring service activated on the same date. If each component had been purchased separately, the price would have been: Building security system: $8,400 Fencing system: $27,300 Security monitoring: $6,300 KSS received payment on November 1, 2021. Required: Provide the journal entries for KSS related to this sale for the year 2021, assuming KSS has a December 31 year end. Assume all cost of goods sold entries have already been made. Round all entries to the nearest dollar.
Keep-U-Safe Systems (KSS) sells security solutions to large corporations. KSS offers electronic security systems for buildings (complete with cameras and keypad entry), perimeter security fencing (both physical and electronic) and offers an optional 24-hour security monitoring service. The solutions can be purchased individually, or as a package. The security systems and security fencing are sold as completed items (installation included). The security monitoring consists of two years of monitoring by KSS's call centre, who alert businesses in the event that an alarm is triggered, as well as dispatch emergency personnel if nobody can be reached. Each sales order is customized to the needs of the customer. On September 30, 2021, KSS sold a security solution that consisted of a building security system, fencing for a warehouse location, and the 24-hour security monitoring service. The solution was sold to Charleston Manufacturers for a price of $38,000, with payment due on November 1, 2021. Installation of the system and fencing was completed on November 1, and the monitoring service activated on the same date. If each component had been purchased separately, the price would have been:
Building security system: $8,400
Fencing system: $27,300
Security monitoring: $6,300
KSS received payment on November 1, 2021.
Required:
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