In September 2025, Sunland Corp. commits to selling 149 of its iPhone-compatible docking stations to Novak Co, for $16,390 ( $110 per product). The stations are delivered to Novak over the next 6 months. After 92 stations are delivered, the contract is modified and Sunland promises to deliver an additional 43 products for an additional $4,515 ( $105 per station). All sales are cash on delivery. Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing for the additional products does not reflect the standalone selling price of the additional products and the prospective method is used.

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16-07-2024
Business

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In September 2025, Sunland Corp. commits to selling 149 of its iPhone-compatible docking stations to Novak Co, for $16,390 ( $110 per product). The stations are delivered to Novak over the next 6 months. After 92 stations are delivered, the contract is modified and Sunland promises to deliver an additional 43 products for an additional $4,515 ( $105 per station). All sales are cash on delivery. Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing for the additional products does not reflect the standalone selling price of the additional products and the prospective method is used.

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