UNEARNED REVENUE AND CUSTOMER DEPOSITS. On November 20, 19x1, Green Bay Electronics agreed to manufacture and supply 500 electronic control units used by Wausau Heating Systems in large commercial and industrial installments.

Wausau deposited $240,000 toward the purchase price upon signing the 3-year purchase agreement, which set the selling price of each control unit at $1,500. No units were delivered during 19x1. During 19x2, 100 units were delivered; 150 units were delivered during 19x3; and the remaining units were delivered during 19x4.

REQUIRED:

1. Prepare the entry by Green Bay to record receipt of the deposit during 19x1. How would the deposit be reported in the financial statements at the end of 19x1?

2. Prepare the entry by Green Bay to record the delivery of 100 units during 19x2.

How would the deposit be reported in the financial statements at the end of 19x2?

3. Prepare the entry by Green Bay to record the delivery of 150 units during 19x3.

Wausau pays in cash upon delivery for units not covered by the deposit.