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In this session, we examine a CPA exam simulation on contract modification involving Roger Distributors Inc. and Staples. As of September 20x2, Roger committed to selling 150 iPhone covers for a total of $1,500, at $10 per unit, to be delivered over six months. After delivering 90 covers, the contract was modified, and Roger agreed to sell an additional 45 covers at $9.50 each, totaling $427.50. All transactions were cash on delivery, with Roger's cost per cover being $4. The tutorial focuses on preparing journal entries using the Perpetual inventory system, starting with the sale of the initial 90 covers at $10 each.