)Prepare the journal entry on February 5, 2025, for Cullumber when the wiring base is delivered to the customer. (Credit accounttitles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for theaccount titles and enter O for the amounts. List all debit entries before credit entries.)DateFeb. 5, 2025Feb. 5, 2025Account Titles and Explanation(To record sales)(To record cost of goods sold)DebitCredit On January 1, 2025, Cullumber Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base inexchange for $5,000. The contract requires delivery of the base first but states that payment for the base will not be made until theshelving unit is delivered. Cullumber identifies two performance obligations and allocates $1,750 of the transaction price to the wiringbase and the remainder to the shelving unit. The cost of the wiring base is $850; the shelves have a cost of $490.

Answer: Please fallow the answer below: On Jan 1, 2025 Cullumber co enters into a contract to sell a…

On January 1, 2025, Cullumber Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $5,000. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Cullumber identifies two performance obligations and allocates $1,750 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of the wiring base is $850; the shelves have a cost of $490.

On January 1, 2025, Cullumber Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $5,000. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Cullumber identifies two performance obligations and allocates $1,750 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of the wiring base is $850; the shelves have a cost of $490.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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