Palantir Corp. sells specialized equipment to the healthcare industry. Palantir pays its sales agents a salary plus a 5% commission on sales. Sales agents employed by the company sold 10 Osgilith MRI machines that were delivered and installed in January 2017. TheMRI machine sells for $45,600 due at the end of 12 months. Alternatively, customers may elect to pay S40,000 at delivery and installation. All customers purchasing machines during January elected to pay at the end of the 12-month period.Required:1. Determine the transaction price of the Osgilith MRI machines, and discuss how Palantir would account for the sales commission.2. Discuss whether the delayed payment contract containssignificant financing component.3. Prepare the journal entries for 2017 for the Osgilith MRI machines sold by Palantir to customers who elect the delayed payment option.4. Prepare the 2017 journal entries that Palantir would make for the 10 Osgilith MRI machines that are sold if customers elect to pay at delivery.

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: Palantir Corp. sells specialized…

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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