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On May 1, 2024, Meta Computer, Incorporated, enters into a contract to sell 4,500 units of Comfort Office Keyboard to one of its clients, Bionics, Incorporated, at a fixed price of $77,400, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2024. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher and that the coupon will be applied to $36,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.20 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2024. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2024? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry that Meta would record on May 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet A Record the entry for Meta on May 1, 2024. Note: Enter debits before credits. Transaction 1 Cash General Journal Debit Credit 77,400 Deferred revenue - keyboards Deferred revenue-coupons Record entry Clear entry View general journal Required 1 Required 3 >

On May 1, 2024, Meta Computer, Incorporated, enters into a contract to sell 4,500 units of Comfort Office Keyboard to one of its clients, Bionics, Incorporated, at a fixed price of $77,400, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2024. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher and that the coupon will be applied to $36,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.20 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2024. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2024? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry that Meta would record on May 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet A Record the entry for Meta on May 1, 2024. Note: Enter debits before credits. Transaction 1 Cash General Journal Debit Credit 77,400 Deferred revenue - keyboards Deferred revenue-coupons Record entry Clear entry View general journal Required 1 Required 3 >

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 7C: On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial...
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On May 1, 2024, Meta Computer, Incorporated, enters into a contract to sell 4,500 units of Comfort Office Keyboard to one of its clients, Bionics, Incorporated, at a fixed price of $77,400, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2024. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher and that the coupon will be applied to $36,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.20 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2024. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2024? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry that Meta would record on May 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet A Record the entry for Meta on May 1, 2024. Note: Enter debits before credits. Transaction 1 Cash General Journal Debit Credit 77,400 Deferred revenue - keyboards Deferred revenue-coupons Record entry Clear entry View general journal Required 1 Required 3 >
Transcribed Image Text:On May 1, 2024, Meta Computer, Incorporated, enters into a contract to sell 4,500 units of Comfort Office Keyboard to one of its clients, Bionics, Incorporated, at a fixed price of $77,400, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2024. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher and that the coupon will be applied to $36,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.20 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2024. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2024? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry that Meta would record on May 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet A Record the entry for Meta on May 1, 2024. Note: Enter debits before credits. Transaction 1 Cash General Journal Debit Credit 77,400 Deferred revenue - keyboards Deferred revenue-coupons Record entry Clear entry View general journal Required 1 Required 3 >
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