Blossom Company sells goods on credit that cost $315,000 to Daniel Company for $415.500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $42,000. The standalone selling price of the goods is $373.500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Your answer is correct. Prepare the journal entries (if any) to record the sale on January 2, 2025. (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. List all debit entries before credit entries) Date Jan. 2, 2025 (b) Jan. 2, 2025 Account Titles and Explanation Accounts Receivable Sales revenue Gross profit Sales Revenue Unearned Service Revenue (To record sales on account) Cost of Goods Sold Inventory First Quarter Cost of goods sold Debit $ 415500 315000 Credit Blossom prepares an income statement for the first quarter of 2025, ending on March 31, 2025 (installation was completed on June 18, 2025). How much revenue should Blossom recognize related to its sale to Daniel? 373500 42000 II 315000

Blossom Company sells goods on credit that cost $315,000 to Daniel Company for $415.500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $42,000. The standalone selling price of the goods is $373.500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Your answer is correct. Prepare the journal entries (if any) to record the sale on January 2, 2025. (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. List all debit entries before credit entries) Date Jan. 2, 2025 (b) Jan. 2, 2025 Account Titles and Explanation Accounts Receivable Sales revenue Gross profit Sales Revenue Unearned Service Revenue (To record sales on account) Cost of Goods Sold Inventory First Quarter Cost of goods sold Debit $ 415500 315000 Credit Blossom prepares an income statement for the first quarter of 2025, ending on March 31, 2025 (installation was completed on June 18, 2025). How much revenue should Blossom recognize related to its sale to Daniel? 373500 42000 II 315000

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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