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Blue Spruce Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $73,200. Blue
Blue Spruce Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $73,200. Blue Spruce normally sells its riding mowers for $14,640 and its push lawn mowers for $976. The contract required the City of Halifax to pay Blue Spruce once all of the merchandise has been delivered to the city's public works yard. Blue Spruce's management does not expect any returns or any issues with payment. Blue Spruce delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered on May 5. Blue Spruce received payment from the city on May 18. Blue Spruce's cost for each riding mower is $10,126, while the push mowers cost the company $630 each. lal Date Account Titles and Explanation Debit Credit Credit April 26 Accounts Receivable 67710 Sales (To record sales) April 26 v Cost of Goods Sold 49324 Inventory (To record cost of goods sold) Accounts Receivable May 5 Sales (To record sales) Cost of Goods Sold May 5 Inventory (To record cost of goods sold) Cash May 18 73200 Accounts Receivable e Textbook and Media
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