Respuesta :
Answer:
1. Determine the transaction price for AwakeAllNight’s revenue contract.
- transaction price = total revenue - placement fee = (5,000 x $3) - $900 = $15,000 - $900 = $14,100
The transaction price is the agreed price (consideration) at which a transaction is carried out.
2. Prepare AwakeAllNight’s journal entries to recognize sales revenue and pay Campus Grocers the placement fee.
December 1, 2017, merchandise sold to Campus Grocers
Dr Accounts receivable (or Cash)* 15,000
  Cr Sales revenue 15,000
*Generally goods are not sold on cash, they are sold on credit.
December 31, 2017, placement fee is paid to Campus Grocer
Dr Promotional expenses 900
  Cr Accounts receivable (or Cash)* 900
*Depending on the credit terms of the sale, the fee is paid with a decrease of accounts receivable (credit to the client) or by check. Sometimes instead of paying the fee, companies generally give them products of equivalent value but that depends on the agreement between the companies.
Answer:
Explanation:
Base on the scenario been described in the question, we can use the following method
1.
transaction price = total revenue - placement fee = (5,000 x $3) - $900 = $15,000 - $900
Transaction price = $14,100
The transaction price is the price which is assent price and which is use in doing transaction
2.
December 1, 2017, merchandise sold to Campus Grocers
Dr Accounts receivable (or Cash)* 15,000
  Cr Sales revenue 15,000
*Generally goods are not sold on cash, they are sold on credit.
December 31, 2017, placement fee is paid to Campus Grocer
Dr Promotional expenses 900
  Cr Accounts receivable (or Cash)* 900
