What is the journal entries to record the sale

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Reference no: EM132421031

Problem: Novak Company sells goods that cost $314,500 to Ricard Company for $404,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $36,500. The standalone selling price of the goods is $367,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete.

Required:

Question 1: What is the journal entries (if any) to record the sale on January 2, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Question 2: Novak prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Novak recognize related to its sale to Ricard?

Reference no: EM132421031

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