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sells. Assume that Blossom Centre sells ovens on a stand-alone basis. Blosso services for ovens. However, Blossom Centre does not offer installation or m her vendors. Pricing for ovens is as follows. ation service $840 903

sells. Assume that Blossom Centre sells ovens on a stand-alone basis. Blosso services for ovens. However, Blossom Centre does not offer installation or m her vendors. Pricing for ovens is as follows. ation service $840 903

FINANCIAL ACCOUNTING
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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Blossom Centre is an experienced home appliance dealer. Blossom Centre also offers a number of services together with the home appliances that it sells. Assume that Blossom Centre sells ovens on a stand-alone basis. Blossom Centre also sells installation services and maintenance services for ovens. However, Blossom Centre does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services (b) Oven In each instance in which maintenance services are provided, service is separately priced within the arrangement at $147. Additionally, the incremental amount charged by Blossom Centre for installation approximates the amount charged by independent third parties. Installation Maintenance Assume that a customer purchases an oven with both installation and maintenance services for $1,000. Allocate the transaction price of $1,000 among the performance obligations of the contract. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, e.g. 12.25% and final answers to O decimal places, e.g. 5,275.) tA $840 $ tA 903 987 1,000
Transcribed Image Text:Blossom Centre is an experienced home appliance dealer. Blossom Centre also offers a number of services together with the home appliances that it sells. Assume that Blossom Centre sells ovens on a stand-alone basis. Blossom Centre also sells installation services and maintenance services for ovens. However, Blossom Centre does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services (b) Oven In each instance in which maintenance services are provided, service is separately priced within the arrangement at $147. Additionally, the incremental amount charged by Blossom Centre for installation approximates the amount charged by independent third parties. Installation Maintenance Assume that a customer purchases an oven with both installation and maintenance services for $1,000. Allocate the transaction price of $1,000 among the performance obligations of the contract. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, e.g. 12.25% and final answers to O decimal places, e.g. 5,275.) tA $840 $ tA 903 987 1,000
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