Home Theater Company has the following transaction related to the sale of merchandise inventory.
June 1: Sold a home theater system (cost of $ \$ 6,200 $ ) for $ \$ 9,000 $ to a customer. The customer paid cash. The sales price included a two-year service contract valued at $ \$ 840 $.
Dec 31. Recorded the amount of service contract earned. Journalize the transactions of Home Theater assuming that the company uses the perpetual inventory system.Do not record the cost of goods sold entry.Omit explanations.

Question

Home Theater Company has the following transaction related to the sale of merchandise inventory.
 June 1: Sold a home theater system (cost of $ \$ 6,200 $ ) for $ \$ 9,000 $ to a customer. The customer paid cash. The sales price included a two-year service contract valued at $ \$ 840 $. 
Dec 31. Recorded the amount of service contract earned. Journalize the transactions of Home Theater assuming that the company uses the perpetual inventory system.Do not record the cost of goods sold entry.Omit explanations.

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The Answer of Home Theater Company has the following transaction related to the sale of merchandise inventory.
 June 1: Sold a home theater system (cost of $ \$ 6,200 $ ) for $ \$ 9,000 $ to a customer. The customer paid cash. The sales price included a two-year service contract valued at $ \$ 840 $. 
Dec 31. Recorded the amount of service contract earned. Journalize the transactions of Home Theater assuming that the company uses the perpetual inventory system.Do not record the cost of goods sold entry.Omit explanations.

Home Theater Company Has the Following Transaction Related to the Sale