The Yoder Supply Company Sells Maintenance Contracts to the Purchasers

question 45

Essay

The Yoder Supply Company sells maintenance contracts to the purchasers of the equipment they sell.The cost of the contract is $1,450,payable at the signing of the contract.The contract covers a three-year period with regularly scheduled inspection visits (every six months)plus any emergency visits.Experience shows that,on the average,one emergency visit per contract is required each year.Assume that 2,200 contracts were sold in 2014 and that contract sales were made evenly over the year.
Give the entries required for 2014 and 2015 to account for the 2,200 contracts.

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Definitions:

Direct Benefits

Immediate advantages gained by individuals from engaging in certain behaviors, such as increased survival or reproductive success.

Secondary Helpers

Individuals that assist in the care and raising of offspring that are not their own, typically observed in social animal species.

Breeders

Individuals within a population that are of reproductive age and actively participate in mating and producing offspring.

Direct Benefits

Benefits that directly improve the fitness of an individual receiving them, often in the context of mate choice, including improved nutrition, protection, or resources.