Entity A is offering various Al-incorporated electronic products through its own distribution channels and some retailers.

The end of the reporting period is 31 July. Entity A uses a perpetual inventory system in accounting for sales of goods and services in accordance with the HKFRS 15 Revenue from Contracts with Customers.

On 1 July 2021, Entity A entered into Contract X1 with Entity B to provide 100 air purifiers that can perform automatic disinfection and are integrated as part of the 'Smart Office' system. Entity A delivered the air purifiers at contract inception. The contract also covered technical support service and maintenance service for four months. Monthly payment of $83,000 would be made at each month-end. In the market, such air purifiers can also be sold at $5,400 each and the cost is $2,500. Entity A also provides technical support service and maintenance service for $330 and $270 respectively to each air purifier for each four-month period.

On 1 August 2021, Entity A sold and invoiced 10 cleaning robots under Contract X2 to Entity C for a total of $60,000. The unit cost of a robot is $4,500. The robots were delivered on 1 August 2021. Entity C paid a deposit of non-refundable $20,000 at the beginning of the contract and would pay the remaining on 31 July 2023. The relevant discount rate was estimated to be 7.50% per annum.

REQUIRED:

Provide journal entries for Entity A of Contract X1 in July 2021 and Contract X2 from 1 August 2021 to 31 July

2022 under relevant accounting standards.

Entity A is offering various Al-incorporated electronic products through its own distribution channels and some retailers. The end of the reporting period is 31 July. Entity A uses a perpetual inventory system in accounting for sales of goods and services in accordance with the HKFRS 15 Revenue from Contracts with Customers. On 1 July 2021, Entity A entered into Contract X1 with Entity B to provide 100 air purifiers that can perform automatic disinfection and are integrated as part of the 'Smart Office' system. Entity A delivered the air purifiers at contract inception. The contract also covered technical support service and maintenance service for four months. Monthly payment of $83,000 would be made at each month-end. In the market, such air purifiers can also be sold at $5,400 each and the cost is $2,500. Entity A also provides technical support service and maintenance service for $330 and $270 respectively to each air purifier for each four-month period. On 1 August 2021, Entity A sold and invoiced 10 cleaning robots under Contract X2 to Entity C for a total of $60,000. The unit cost of a robot is $4,500. The robots were delivered on 1 August 2021. Entity C paid a deposit of non-refundable $20,000 at the beginning of the contract and would pay the remaining on 31 July 2023. The relevant discount rate was estimated to be 7.50% per annum. REQUIRED: Provide journal entries for Entity A of Contract X1 in July 2021 and Contract X2 from 1 August 2021 to 31 July 2022 under relevant accounting standards