Wildhorse Company sells on credits goods that cost $302,500 to Ricard Company for $415,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $43,000. The standalone selling price of the goods is $372,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 2, 2020 Jan. 2, 2020 (To record sales on account) (To record cost of goods aold) Sales Revenue Gross Profit (b) Wildhorse prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Wildhorse recognize related to its sale to Ricard? Cost of Goods Sold First Quarter $ Debit $ Credit
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Wildhorse Company sells on credits goods that cost $302,500 to Ricard Company for $415,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $43,000. The standalone selling price of the goods is $372,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
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