8 On 1 January 20X8, an entity enters into a contract to transferProducts A and B to a customer in exchange for P1,000. Thecontract requires Product A to be delivered first and statesthat payment for the delivery of Product A is conditional onthe delivery of Product B. The stand-alone selling prices ofProducts A and B are P480 and P720, respectively. Product Ais delivered on January 3, 20X8 while Product B is deliveredon March 31, 20X8. The customer pays on April 8, 20X8.Requirement: Provide the journal entries.9. Use the facts in the immediately preceding problem. Inaddition, the contract also includes a promise to transferProduct D. Total consideration in the contract is P130. Thestand-alone selling price for Product D is highly variablebecause the entity sells Product D to different customers for abroad range of amounts (P15 - P45).Requirement: Allocate the transaction price to the performanceobligations in the contract.

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On entity enters into a contract to transfer Products A and B to a customer in exchange for P1,000. The contract requires Product A to be delivered first and states that payment for the delivery of Product A is conditional on the delivery of Product B. The stand-alone selling prices of Products A and B are P480 and P720, respectively. Product A is delivered on January 3, 20X8 while Product B is delivered on March 31, 20X8. The customer pays on April 8, 20X8.

On entity enters into a contract to transfer Products A and B to a customer in exchange for P1,000. The contract requires Product A to be delivered first and states that payment for the delivery of Product A is conditional on the delivery of Product B. The stand-alone selling prices of Products A and B are P480 and P720, respectively. Product A is delivered on January 3, 20X8 while Product B is delivered on March 31, 20X8. The customer pays on April 8, 20X8.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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