Question

Problem 18-04

Cullumber Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Cullumber’s main products are as follows.

Problem 18-04 Cullumber Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Cullumber's main products are as follows. Item Refrigerator Range Stackable washer/dryer unit Standalone Selling Price (Cost) $500 ($260 ) 570 (280) 710 (400) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,820. The bundle price includes delivery and installation. Cullumber also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Cullumber Appliance Co. On June 1, 2020, Cullumber sold 110 washer/dryer units without installation to Laplante Rentals for $78,100. Laplante is a newer customer and is unsure how this product will work in its older rental units. Cullumber offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2020. (Credit account tities 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 Debit Credit (To record sales) (To record cost of goods sold)

Answer 1

credit DY $78,100 Dr $44,000 l credila Answert - Journal entries Date parlioclars LFL Debilt [2020 cash Alc $78,100 June-1 To sales Being to record sales] cost of goods sold Ale $44,000 To Inventory (110x$400) Being to record cost of goods sold] Journal entries Date I particulars LF bebit 2020 cash Ale (310x $1,820) 204] Do $112840 To unearned sales Revende Being to record cash received to bundle to delivered and installed, Aug-il unearned sales Revence Ale or $112,840 cash Ale (3310Ⓡ$ 1820)x80%) $451,360 To sales Ale [10x $1820] Being to record sales] cost of Goods sold ale or $291,400 [C$260 + $ 280 + $ 400)x3/07 TO Inventory being to record cost of goods sold] Но $ 112,840 $564,200 $ 291,400

credit Debit $112,840 $112,840 840 $507780 $620,620 - Journal entries bate particulars 2020 cask ale R310x$1820) 20-72 or May-1 To unearned sales Revence Being to record cash received to bundle to delivered and installed] July-1 unearned sales Revence Ale or Cash Ale (Q10x$1890) 90% DY To sales (310 x $1820) 110%) Being to record Sales] Cost of Goods sold Ale Do |$260+$280 +$400)=310] To Inventory Being to record cost of goods sold Date - particulars 2019 cash Ale (380x$1820)10%) or To citearned Sales Revence Aprill Unearned Sales Revenue te on Ассоши! Rece TO Sales 180x $1820] Being to record Sales] DE $29400 |$291,400 credit bebit $69,160 $69,160 1669160 1$622,440 $691,600 cost of $357200 goods sold Ale 132804 $280+$400) 380] To Inventory $357,200 Being to record cost of goods sold]