Problem 18-4 Account Titles and Explanation Debit Credit 1 2 (To record sales) 1
ID: 2405933 • Letter: P
Question
Problem 18-4
Account Titles and Explanation
Debit
Credit
1
2
(To record sales)
1
(To record cost of goods sold)
No.
Date
Account Titles and Explanation
Debit
Credit
(1)
May 1, 2017
(2)
Aug. 1, 2017
(To record sales)
(To record cost of goods sold)
Date
Account Titles and Explanation
Debit
Credit
May 1, 2017
Jul. 1, 2017
(To record sales)
(To record cost of goods sold)
Date
Account Titles and Explanation
Debit
Credit
Feb. 1, 2017
Apr. 1, 2017
(To record sales)
(To record cost of goods sold)
Please Show Work
Problem 18-4
Whispering Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units. Pricing and cost information on Whispering’s main products are as follows.Item Standalone
Selling Price (Cost) Refrigerator $500 ($260 ) Range 570 (280 ) Stackable washer/dryer unit 710 (400 )
Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,820. The bundle price includes delivery and installation. Whispering also provides installation (not a separate performance obligation).
Respond to the requirements related to the following independent revenue arrangements for Whispering Appliance Co.
Explanation / Answer
S. No. Date Account Tille Debit Credit a 01-06-2017 Cash 78100 Sales Revenue 78100 To Record Sale 01-06-2017 Cost of Goods Sold 44000 Inventory (110*400) 44000 To Record cost of Goods Sold b. 01-05-2017 Cash (310*$1820*20%) 112840 Unearned Service Revenue 112840 To Record Cash received on bundles to be installed 01-08-2014 Unearned Service Revenue 112840 Cash 451360 Sales Revenue (310*$1820) 564200 TO Record Revenue 01-Aug Cost of Godds Sold 291400 Inventory 310(260+280+400) 291400 TO record Cost of Goods Sold c. 01-05-2017 Cash 112840 Unearned Sales Revenue 112840 01-07-2017 Unearned Sales Revenue 112840 Cash 507780 Sales Revenue($1820X310X1.10) 620620 Cost of Godds Sold 291400 Inventory 310(260+280+400) 291400 TO record Cost of Goods Sold d. 01-02-2017 Cash (10%X380X1820) 69160 Unearned Sales Revenue 69160 01-04-2017 Unearned Sales Revenue 69160 Account Receivable 622440 Sales Revenue 691600 Cost of Godds Sold 357200 Inventory 380(260+280+400) 357200 TO record Cost of Goods Sold