Q: Sarjit Systems sold software to a customer for $80,000
Sarjit Systems sold software to a customer for $80,000. As part of the contract, Sarjit promises to provide “free” technical support over the next six months. Sarjit sells the same software without te...
See AnswerQ: Tulane Tires wrote a contract for a $100,000 sale
Tulane Tires wrote a contract for a $100,000 sale to the new Garden District Tour Company. Tulane only anticipates a slightly greater than fifty percent chance that Garden will be able to pay the amou...
See AnswerQ: EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system
EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law...
See AnswerQ: eLean is an online fitness community, offering access to workout routines
eLean is an online fitness community, offering access to workout routines, nutrition advice, and eLean coaches. Customers pay a $50 fee to become registered on the website, and then pay $5 per month f...
See AnswerQ: Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a
Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When customers purchase a Tornado, they also have the option to purchase an extend...
See AnswerQ: Assume the same facts as in BE 5–8 but that
Assume the same facts as in BE 5–8 but that customers pay 20% less for the extended warranty if they buy it at the same time they buy a Tornado. How many performance obligations exist in the implied c...
See AnswerQ: McAfee sells a subscription to its antivirus software along with a subscription
McAfee sells a subscription to its antivirus software along with a subscription renewal option that allows renewal at half the prevailing price for a new subscription. How many performance obligations...
See AnswerQ: Precision Equipment, Inc., specializes in designing and installing customized manufacturing
Precision Equipment, Inc., specializes in designing and installing customized manufacturing equipment. On February 1, 2018, it signs a contract to design a fully automated wristwatch assembly line for...
See AnswerQ: On January 1, 2018, Lego Construction Company signed a contract
On January 1, 2018, Lego Construction Company signed a contract to build a custom garage for a customer and received $10,000 in advance for the job. The new garage will be built on the customer’s land...
See AnswerQ: Aria Perfume, Inc., sold 3,210 boxes of white
Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2018 at the price of $90 per box. The company offers a full refund to unsatisfied customers for any product returned within 30...
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