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In this session, we explore a CPA exam simulation focusing on contract modification. On September 20x2, Roger Distributors Inc committed to sell 150 iPhone-compatible covers to Staples for $1,500, at a rate of $10 per unit, over six months. After delivering 90 covers, the contract was modified to include an additional 45 covers at a new selling price of $9.50 each. It's crucial to note that all transactions were conducted on a cash-on-delivery basis, and Roger's cost per cover was $4. The tutorial will guide through the preparation of journal entries using the perpetual inventory system, starting with the sale of the initial 90 covers at $10 each.
