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In this tutorial session, we review a CPA exam simulation focusing on contract modification. On September 20x2, Roger Distributors Inc agreed to sell Staples 150 iPhone compatible covers for a total of $1,500, at a price of $10 per unit, with deliveries spread over six months. After delivering 90 covers, the contract was modified to include an additional 45 covers at a reduced price of $9.50 each, totaling $427.50. This modification reflects a transition to a sale price of $9.50 for the additional covers. All transactions were cash on delivery, and the cost per cover for Roger is $4. The session will also demonstrate how to record journal entries for these sales using the Perpetual inventory system, beginning with the sale of the first 90 covers for $10 each.