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Question - On November 10, 2020, EEE Company enters into a contract with a private company to deliver 2 Dining Set, 2 Sofa and 5 Cabinets for a lumpsum price of P500,000. It is stipulated in the contract that payment is made only upon delivery of all the orders, though the items may be delivered in installment. The stand-alone prices of the items are: Dining Set - P80,000 per set; Sofa - P100,000 per set; and Cabinet - 40,000 per piece. On December 20, 2020, the following were delivered: 1 Dining Set, 1 Sofa and 3 Cabinets. The remaining items were delivered on January 15, 2021.
Determine the following:
a. How many performance obligations are there in the contract?
b. How much is revenue to be recognized in 2020 and 2021?
c. Entries to record the transactions in 2020 and 2021.
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