Appliance Plus Retail, sells major appliances and systems to their customers. They also employ technicians...
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Appliance Plus Retail, sells major appliances and systems to their customers. They also employ technicians who can service these products. Sometimes customers opt only to purchase the product and sometimes customers chose to bundle the product with a service agreement. Two such arrangements were offered to customers as follows. Air Purifiers: Customers that upgrade to a higher quality (more expensive) air purifier get one service inspection on the purifier one year later on the purchase anniversary date. HVAC: Q\#3: By the end of the current year end how much EARNED REVENUE (not gross profit) is permitted to be recognized for the HVAC packages ONLY? Combined journal entries should be prepared for the year for ALL customers. Consider ONLY the air purifier bundled packages sold. What amount of the TOTAL (not per package) transaction price/revenue should be allocated to the air purifier? Q\#2: Consider ONLY the HVAC systems bundled packages sold. What amount of the TOTAL (not per package) transaction price/revenue should be allocated to the maintenance on the HVAC
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