з уears of Internet service. The price for the tablet and a 3-year Internet connection service contract is $500. The standalone selling price of the tablet is $250 (the cost to Tablet Tailors is $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $300. On January 2, 2020, Tablet Tailors signed 100 contracts, receiving a total of $50,000 in cash. I need help with the following entry: Debit Credit Jan. Cash 50,000 Account Name Account Name (To record revenue and unearned revenue for Jan. 2 revenue agreement.)

з уears of Internet service. The price for the tablet and a 3-year Internet connection service contract is $500. The standalone selling price of the tablet is $250 (the cost to Tablet Tailors is $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $300. On January 2, 2020, Tablet Tailors signed 100 contracts, receiving a total of $50,000 in cash. I need help with the following entry: Debit Credit Jan. Cash 50,000 Account Name Account Name (To record revenue and unearned revenue for Jan. 2 revenue agreement.)

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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Complete Electronics Inc. sells a point - of -sale computer with a two- year service contract. Complete collects $3,500 cash for the selling price of the computer and $648 for the two - year service contract. How is revenue recognized? O A. Complete will record Sales Revenue of $3.500 when the computer delivered and will record revenue for the service contract as service calls are made. O B. Complete will record Sales Revenue of $2,074 per year for two years. O C. Complete will record Sales Revenue of $4,148 when the computer is delivered to the customer. O D. Complețe will record Sales Revenue of $3,500 when the computer is delivered and Service Revenue of $27 per month for 24 months.
A car company is offering financing plan to its customers for a limited period of time. The offer is good for 1 year and available only for citizens and residents with stable monthly income. The offer is part of the company’s anniversary sale promotion campaign. The following were offered to you; Toyota car model 2019 cash price OMR 7,000; down payment OMR 500 and the balance will be paid with 24 equal monthly payments of OMR 280. 2. Toyota car model 2019 cash price OMR 7,000 down payment OMR 1,000 and the balance will be paid with 24 equal monthly payments of OMR 260. 3. Borrow OMR 7,000 from the bank at 2% simple interest for 2 years. The money borrowed will be used to buy the car for cash. A) Compare the finance charges of the three options. Which do you think is the best option for the customer? B) Discuss behavioral and non-financial factors you consider when deciding the…
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Rahe Corp. sold a customer service contract with a price of $20,000 to Peterson Warehousing. Rahe Corp. offered terms of 2/10, n/30 and expects Peterson to pay within the discount period. Required: Prepare the journal entry to record the sale using the net method. Prepare the journal entry assuming the payment is made within 10 days (within the discount period).
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