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III. (50 points) Schultz Luxury Spas sells and installs outdoor hot tubs and spas. Prepare the journal entries that Schultz should make for the following transactions. Schultz Luxury Spas reports revenue from sales and installation separately as Sales Revenue and Service Revenue. Schultz uses a perpetual inventory system.

a. On March 1, 2023, Schultz signed a contract with SeasideResort to sell and install ten hot tubs for a total price of $90,000. Seaside paid the $90,000 at the time the contract was signed. The hot tubs on their own sell for $6,000 eachand the average cost to install one hot tub is $4,000. The hot tubs cost Schultz $3,200 each.

b. On April 20, 2023, the hot tubs were delivered and installed at Seaside Resort.

c. On May 3, Schultz sold and delivered five hot tubs to Sierra Inn and three hot tubs to Columbia Hotel. The customers will install the tubs themselves. The hot tubs were sold on credit for $6,000 each, terms 2/10, n/30. The hot tubs cost Schultz $3,200 each. Schultz Luxury Spas uses the net method to record sales discounts.

d. On May 13, Sierra Inn paid the amount owed for the hot tubs it purchased.

e. On June 2, Columbia Hotel paid its invoice in full.

f. On July 1, Schultz entered into a contract to deliver a hot tub to Luis Santos. The contract requires Santos to pay the price of $4,500 in advance on July 10.

g. On July 10, Santos paid $4,500 to Schultz Luxury Spas.

h. On July 20, Schultz delivered the hot tub to Santos. Schultzs cost for the hot tub was $2,200.