SHOW LIST OF ACCOUNTS Account Titles and Explanation Debit Credit The Appliance
ID: 2520114 • Letter: S
Question
SHOW LIST OF ACCOUNTS
Account Titles and Explanation
Debit
Credit
The Appliance Store is an experienced home appliance dealer. Appliance Store also offers a number of services together with the home appliances that it sells. Assume that Appliance Store sells dishwashers on a standalone basis. Appliance Store also sells installation services and maintenance services for dishwashers. However, Appliance Store does not offer installation or maintenance services to customers who buy dishwashers from other vendors. Standalone selling prices for dishwashers, installation, and maintenance are as follows..Dishwasher only $1,060 Installation service 120 Maintenance services 240 Dishwasher with installation and maintenance services 1,370
In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $220. Additionally, the incremental amount charged by Appliance Store for installation approximates the amount charged by independent third parties. Dishwashers are sold subject to a general right of return. If a customer purchases a dishwasher with installation and/or maintenance services, in the event Appliance Store does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $1,060.
Explanation / Answer
Dishwasher 1060 1060/1400*1370 1037 Installation 120 120/1400*1370 117 Maintenance 220 220/1400*1370 215 Total 1400 Explanation Debit Credit Cash 1370 Sales Revenue 1037 Service Revenue 117 Unearned Service Revenue 215
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