Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $2,700 per machine. HEC usually sells these machines to hospitals at a price of $6,240. HEC also separately sells 12 months of training and repair services for fMRI machines for $1,560. HEC is paid $6,240 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price but included one year of free training and repair service. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair service.
Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $2,700 per machine. HEC usually sells these machines to hospitals at a price of $6,240. HEC also separately sells 12 months of training and repair services for fMRI machines for $1,560. HEC is paid $6,240 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price but included one year of free training and repair service. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair service.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
gohil sanjay
Transcribed Image Text:Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $2,700 per machine. HEC
usually sells these machines to hospitals at a price of $6,240. HEC also separately sells 12 months of training and repair
services for fMRI machines for $1,560. HEC is paid $6,240 cash on November 30 for the sale of an fMRI machine delivered
on December 1. HEC sold the machine at its regular price but included one year of free training and repair service. For the
machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of
revenue earned from the equipment sale versus the revenue earned from the training and repair service.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
Prepare journal entries would HEC record on November 30 and December 1? (Assume HEC uses a perpetual inventory system for recording the cost of goods sold.)
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education