Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on may 1, 2021, meta computer, inc., enters into a

On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 6,000 units...

60.1K

Verified Solution

Question

Accounting

On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 6,000 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $102,000, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $60,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2021.

3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Explain the differences between Iso, Hypo, and Hypertonic conditions. If the solution is Hypertonic then the...

Electrical Engineering
1.2K views

Use source transformation on the circuit shown in Fig 4.98 to find \( I_x \)...

Accounting
1.2K views

Big Company purchased a machine on February 1, 2013, and will make seven semiannual payments of...

Physics
1.2K views

agnetic eld of strength B perpendicular to its plane Radius of loop is r current...

Physics
1.2K views

A wave propagates in a string in the positive x direction with velocity v The...

Physics
1.2K views

x An infinitely long solid cylinder of radius R has a uniform volum spherical cavity...

Statistics
1.2K views

Submit Answer 3 Points A person is asked to draw a line segment that they...

Calculus
1.2K views

Evaluate the integral integral 488x 3 dx 0 48e x 3 48 3x 3 dx

Algebra
1.2K views

2 Modeling the population of a fishery helps to determine the number of fish that...

Accounting
1.2K views

26.Fortune Corporations comparative balance sheet for current assets and liabilities was as follows: ...

Accounting
1.2K views

At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual...

Finance
1.2K views

10.) Project selection ambiguity can arise if you rely on the internal rate of return...