Accorsi & Sons Specializes in Selling and Installing Upscale Home

question 194

Essay

Accorsi & Sons specializes in selling and installing upscale home theater systems.On March 1,2016,Accorsi sold a premium home theater package that includes a projector,set of surround speakers,and high quality leather seats,along with complete installation service,for $32,500.If sold separately,each of these goods and services would have cost $15,000 (projector),$12,500 (speakers),$17,500 (seats),and $3,000 (installation),respectively.
Required:,How much of the transaction price would be allocated to the projector,the speakers,the leather seats,and the installation service,assuming that each of these four parts of the contract is a separate performance obligation? Show your work.

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Definitions:

Bank Reconciliation

Bank reconciliation involves the process of matching and comparing the account balance in an entity's financial records to the corresponding information on a bank statement, to ensure accuracy and consistency.

NSF Check

A check that cannot be processed because the writer's account does not have sufficient funds, known as a Non-Sufficient Funds check.

Bank Service Charges

Fees charged by banks for various services provided to customers, such as account maintenance or transaction processing.

Reconciliation

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement, by identifying discrepancies and making appropriate adjustments.