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On October 1,2020, Crane sold one of its super deluxe combination gas/charcoal barbecues to a local builder. The builder plans to install it in one of its "Parade of Homes" houses. Crane accepted a three-year, zero-interest-bearing note with a face amount of $4,046. The barbecue has an inventory cost of $2,052. 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 O for the amounts. Record journal entries in the order presented in the problem.) Crane offers contract BM2O5, which comprises a free-standing gas barbecue for small patio use plus installation to a customer's gas line for a total price of $970. On astand-alone basis, the barbecue sells for $850( cost $500), and Crane estimates that the fair value of the installation service (based on cost-plus estimation) is $170. Crane signed 12 BM205 contracts on April 20, 2020 , and customers paid the contract price in cash. The barbecues were delivered and installed on May 15. 2020. Prepare journal entries for Crane for BM205 in April and May 2020. (Credit account tities are automatically indented when the amount is entered. Donot indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) The province of Ontario is planning major renovations in its parks during 2020 and enters into a contract with Crane to purchase 350 durable, easy-maintenance, standard charcoal barbecues during 2020. The barbecues are priced at $200 each (with a cost of $175 each), and Crane provides a 5% volume discount if Ontario purchases at least 250 grills during 2020. Crane delivers and receives payment for 230 barbecues on April 17, 2020. Based on prior experience with province of Ontario renovation projects, the delivery of this many barbecues makes it certain that Ontario will meet the volume discount threshold. Prepare the journal entries for Crane for barbecues sold on April 17, 2020, including any volume discounts. (Credit account tities are dutomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts.)
