Cullumber company sells goods that cost $293,000 to ricard company for $381,000 on january 2, 2017. the sales price includes an installation fee, which has a standalone selling price of $39,000. the standalone selling price of the goods is $342,000. the installation is considered a separate performance obligation and is expected to take 6 months to complete. prepare the journal entry (if any) to record the sale on january 2, 2017.

The Journal entry are as follows:

(i) On January 2, 2017

Accounts receivable A/c    Dr. $381,000

To Sales revenue                                      $342,000

To unearned service revenue                  $39,000

(To record the sale of goods)

(ii) On January 2, 2017

Cost of goods sold A/c   Dr. $293,000

To Inventory A/c                                      $293,000

(To record the cost of goods sold)

they are equal

Explanation:

60 minutes is the same as an hour