[Solved] DGA Associates,Inc

Question 253
Essay

DGA Associates,Inc.sells computer workstations designed for architects.In 2016,it sold 120 workstations for $360,000.For each workstation sold,DGA distributed a 40% discount coupon for any additional future purchases made in the next 12 months.Based on historical experience,DGA expects that approximately 30% of the coupons will be utilized,and the goods purchased with the coupons would normally sell for $350.
Required:
(a)How many performance obligations are in a contract to purchase a computer workstation? Explain the reasons for your answer.
(b)Prepare a journal entry to record revenue for the sale of 120 computer workstations,assuming that DGA uses the residual method to estimate the stand-alone selling price of the workstations sold without the discount coupon.

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions

3.5K

Study sets

66.5K

Quizzes

5.9M

Questions

Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans