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Business, 17.06.2020 20:57 jennycrapson
Great American Oilchange (GAO) sells a combined oil change service and parts package for $46. A customer who supplies the parts (oil and filter) is charged $36 for only the service. whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $36 for the parts. The parts cost GAO $30.
Required:
a. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package. TIP: To calculate the percentage of the combined package that relates to the service, divide the stand-alone selling price of the service by the combined stand-alone selling prices of both the service and parts.
b. Prepare the journal entry GAO would record if GAO provides a combined oil change service and parts package to a customer on October 7. Assume GAO distinguishes Service Revenue from Sales Revenue arising from the sale of parts. it uses a perpetual inventory system for recording the cost of goods sold, and it collects cash the day the oil change is performed.
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Great American Oilchange (GAO) sells a combined oil change service and parts package for $46. A cust...
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