Home Theater Company Has the Following Transaction Related to the Sale

question 168

Essay

Home Theater Company has the following transaction related to the sale of merchandise inventory.
June 1: Sold a home theater system (cost of $\$ 6,200$ ) for $\$ 9,000$ to a customer. The customer paid cash. The sales price included a two-year service contract valued at $\$ 840$ .
Dec 31. Recorded the amount of service contract earned. Journalize the transactions of Home Theater assuming that the company uses the perpetual inventory system.Do not record the cost of goods sold entry.Omit explanations.

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Definitions:

Maslow's Hierarchy

A psychological theory proposing a hierarchy of human needs, from basic physiological needs to self-actualization, affecting motivation.

Fulfilling Career

Employment that is rewarding and satisfies one's job expectations, interests, and personal goals.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Positive Communication

The practice of conveying messages in a constructive, encouraging, and optimistic manner to foster effective interpersonal interactions.