Allocate Transaction Price, Discounts, Time Value.

Chef Grill Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations.

Instructions

Respond to the requirements related to the following independent revenue arrangements for Chef Grill products and services.

B-

Chef Grill sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for 9000 AED (cost 5000 AED) on credit with terms 2/20, net/60. Prepare the journal entries for the sale of 20 grills on August 1, 2021, and upon payment, assuming the customer paid on (1) August 20, 2021, and (2) September 29, 2021. Assume the company records sales net.