Sage Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations.Respond to the requirements related to the following independent revenue arrangements for Sage products and services. Sage offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gasline for a total price $744. On a standalone basis, the grill sells for $647 (cost $458), and Sage estimates that the standaloneselling price of the installation service (based on cost-plus estimation) is $143. (The selling of the grill and the installation servicesshould be considered two performance obligations.) Sage signed 10 GM205 contracts on April 20, 2020, and customers paid thecontract price in cash. The grills were delivered and installed on May 15, 2020. Prepare journal entries for Sage for GM205 inApril and May 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) DateAccount Titles and ExplanationDebitCreditApr. 20, 2020Cash7,440Unearned Sales RevenueUnearned Service RevenueMay 15, 2020Unearned Sales Revenue6,093.36Unearned Service Revenue1,346.64Sales RevenueService Revenue1(To record sales)Cost of Goods Sold4,580Inventory

Solution:- Journal Entries for Sage company:- Date Account details and explanation Debit($)…

Sage Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Respond to the requirements related to the following independent revenue arrangements for Sage products and services.

Sage Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Respond to the requirements related to the following independent revenue arrangements for Sage products and services.

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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