Fruits Limited signed contracts (within the scope of IFRS 15) with various customers in the current financial year. Fruits Limited entered into a contract of sale with Grape Limited for widgets worth $1 050 000. The contract stipulates a $105 000 early settlement discount. Grape Limited often takes advantage of this discount. At contract inception, Fruits Limited expects that the customer will qualify for the early settlement discount. Later in the financial year, Fruits Limited concluded a contract with Litchi Limited. The contract was also for widgets. The widgets were worth $1 050 000. The contract includes a rebate of $420 000 to Litchi Limited should Litchi Ltd meet specific criteria. At contract inception, Fruits Limited expects Litchi Limited to qualify for the rebate (a price reduction). Fruits Limited finalised a contract with Peach Limited for an amount of $1 050 000. The contract stipulates that Fruits Limited is required to transfer the goods immediately whilst payment will only be made 6 months later. Lastly, Fruit Limited signed a contract with Tangerine Limited that was similar to the one signed with Peach Limited, with the exception of the settlement date. Tangerine Limited was only required to settle the contract price in two years time. Assume that a discount rate of 10% is considered appropriate.

Required: Determine (with supporting calculations) the transaction price for the contract with Grape Limited and Litchi Limited. Provide supporting journal entries.