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E18-11B (Multiple-Deliverable Arrangement)On December 31, 2014, Gard Company sells production equipment to Wells Inc. for $75,000. Gard includes a 1-year warranty service with the sale of all its equipment. The customer receives and pays for the equipment

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E18-11B (Multiple-Deliverable Arrangement)On December 31, 2014, Gard Company sells production equipment to Wells Inc. for $75,000. Gard includes a 1-year warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2014. Gard estimates the prices to be $74,000 for the equipment and $1,000 for the warranty.;Instructions;(a) Prepare the journal entry to record this transaction on December 31, 2014.;(b) Indicate how much (if any) revenue should be recognized on January 31, 2015, and for the year;2015.

 

Paper#75363 | Written in 18-Jul-2015

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