Culver sells its specialty combination gas/wood-fired grills to local restaurants Each grill is sold for $1.040 jcost $596) on credit with terms 3/30, net 90 Prepare the journal entries for the sale of 20 grs on September 1, 2020, and upon payment, assuming the customer paid on (1) September 25, 2020, and (2) October 15, 2020 Assume the company records sales net (Credit account titles are automatically indented when the amount is entered De not indent manually no entry is required, select "No entry for the accounts and enter Ofor the amounts) Account Titles and Explanation No. (1) (2) Date (To record sales) (To record cost of goods sold) (To record sales) (To record cost of goods sold) Debit
Culver sells its specialty combination gas/wood-fired grills to local restaurants Each grill is sold for $1.040 jcost $596) on credit with terms 3/30, net 90 Prepare the journal entries for the sale of 20 grs on September 1, 2020, and upon payment, assuming the customer paid on (1) September 25, 2020, and (2) October 15, 2020 Assume the company records sales net (Credit account titles are automatically indented when the amount is entered De not indent manually no entry is required, select "No entry for the accounts and enter Ofor the amounts) Account Titles and Explanation No. (1) (2) Date (To record sales) (To record cost of goods sold) (To record sales) (To record cost of goods sold) Debit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...
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Please solve the circled portion. I have left all of the questions on there to let you know the background of the questions. Use a factor table when necessary. Thank you!
Transcribed Image Text:Culver Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for
custom patio grilling stations
Respond to the requirements related to the following independent revenue arrangements for Culver products and services.
Click here to view factor table
Culver offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's
gas line for a total price $828. On a standalone basis, the grill sells for $711 (cost $431), and Culver estimates that the standalone
selling price of the installation service (based on cost-plus estimation) is $165. (The selling of the grill and the installation services
should be considered two performance obligations) Culver signed 10 GM205 contracts on April 20, 2020, and customers paid
the contract price in cash. The grills were delivered and installed on May 15, 2020. Prepare journal entries for Culver for GM205
In April and May 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry
is required, select "No entry for the account titles and enter O for the amounts. Round answers to 0 decimal places, es 5,275)
No.
(1)
Date
(2)
Account Titles and Explanation
Date
(To record sales)
(To record cost of goods sold)
Culver sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,040 (cost $596) on credit
with terms 3/30, net/90 Prepare the journal entries for the sale of 20 grills on September 1, 2020, and upon payment, assuming
the customer paid on (1) September 25, 2020, and (2) October 15, 2020 Assume the company records sales net. (Credit account
P
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the
account titles and enter O for the amounts)
Account Titles and Explanation
V
(To record sales)
(To record cost of goods sold)
(To record sales)
Debit
(To record cost of goods sold)
Crec
Debit
The State of Kentucky is planning major renovations in its parks during 2020 and enters into a contract with Culver to purchase
400 durable, easy maintenance, standard charcoal grills during 2020. The grills are priced at $210 each (with a cost of $160 each),
and Culver provides a 5% volume discount if Kentucky purchases at least 290 grills during 2020. On April 17, 2020, Culver
delivered and received payment for 270 grills. Based on prior experience with the State of Kentucky renovation projects, the
delivery of this many grills makes it certain that Kentucky will meet the discount threshold. Prepare the journal entries for Culver
for grills sold on April 17, 2020. Assume the company records sales transaction net. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the
amounts)
Account Titles and Explanation
(To record sales)
(To record cost of goods sold)
eTextbook and Media
List of Accounts
Date
On October 1, 2020, Culver sold one of its super deluxe combination gas/charcoal grills to a local builder. The builder plans to
install it in one of its "Parade of Homes' houses. Culver accepted a 3 year, zero-interest-bearing note with face amount of $5,803
The grill has an inventory cost of $2,848. An interest rate of 10% is an appropriate market rate of interest for this customer.
Prepare the journal entries on October 1, 2020, and December 31, 2020 (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for the amounts
Round present value foctor calculations to 5 decimal places, eg 125124 and the final answer to 0 decimal places eg 58,971)
Account Titles and Explanation
v
(To record sales)
(To record cost of goods sold)
Debit
eTextbook and Media
List of Accounts
Credit
Debit
Credit
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