7. A large community college pays cash and takes delivery of 50 iMac computers from a local Apple store on January 1, 2019. The invoiced price is $2,800 per unit (including hardware, software essential to the functionality of the hardware, third-party software including Microsoft Office and Adobe, and two years of tech service and support). The market prices for the hardware and essential software are $2,500 and $300, respectively. The third-party software typically retails for $500. The equivalent service and support contracts are $100 per year. Prepare the local Apple stores journal entries for January 1, 2019, Dec. 31, 2019, and Dec. 31, 2020. Cost of goods sold journal entry is not needed in this question