Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 12 Nov 2017 My Price 7.00

Gaertner Corp.

In September 2014, Gaertner Corp. commits to selling 150 of its iPhonecompatible docking stations to Better Buy Co. for $15,000 ($100 per product). The stations are delivered to Better Buy over the next 6 months. After 90 stations are delivered, the contract is modified and Gaertner promises to deliver an additional 45 products for an additional $4,275 ($95 per station). All sales are cash on delivery.

(a) Prepare the journal entry for Gaertner for the sale of the first 90 stations. The cost of each station is $54.
(b) Prepare the journal entry for the sale of 10 more stations after the contract modification, assuming
that the price for the additional stations reflects the standalone selling price at the time of the contract
modification. In addition, the additional stations are distinct from the original products as
Gaertner regularly sells the products separately.
(c) Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing for the
additional products does not reflect the standalone selling price of the additional products and the
prospective method is used.

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Nov 2017 11:11 AM My Price 7.00

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