Penticton Okanagan Vineyards (POV) is a grape grower and wine producer with a February 28 year-end. The annual financial statements for 2019 were issued on April 15, 2019. Consider the following events (assume all amounts are material): 

a. During the fall of 2018, POV harvested 100 tonnes of grapes, extracted 50,000 litres of juice from these grapes, and began fermentation of the juice into wine. Labour costs for the harvest and production totalled $240,000, of which $15,000 remained unpaid as at February 28, 2019.

b. During the 2019 fiscal year, the company sold $950,000 of inventory with sales value totalling $1,850,000, of which $150,000 remained uncollected at the end of the year. Aging analysis indicates that $4,000 would be an appropriate amount in the allowance for doubtful accounts at year-end. Prior to recording the adjusting entry for bad debts, the allowance for doubtful accounts had a balance of $1,200.

c. On March 11, 2019, during routine testing, POV staff found that 10 barrels of wine having a work-in-process value of $50,000 had turned bad. The head winemaker concluded that the problem originated from defective yeast used in the fermentation process in the fall of 2018. 

d. On May 1, 2019, vineyard staff noticed that a tract of vines did not grow after the spring thaw. The staff attributed the problem to cold winter conditions in January that damaged the roots of the vines. The dead vines had a value on the books of $80,000 as biological assets.

Required:

Analyze the above facts and, where appropriate, indicate the journal entries that should have been recorded. Where journal entries are not adequate, describe the appropriate accounting treatment of the events. Be careful to specify the fiscal year in which each event should be recognized or disclosed. (“2019” means the fiscal year ended February 28, 2019.).

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a. b. C. d. Fiscal year Journal entries or explanation