Lawler Inc. is a sporting goods store that sells merchandise and provides training services to local sports clubs. On January, Year 1, Lawler Inc. negotiated a contract with Gremer Co. to provide 250 baseball jerseys for $6,000 and 50 hours of batting training in its batting cages at $50 per hour to be performed by Lawler's trainers at its store. The baseball jerseys cost Lawler Inc. $10 to make, and Lawler Inc. uses the perpetual method to record inventory. Normal retail pricing for these trainings are $55 per hour.

The terms of the contract require Gremer to pay 25% of the total amount for the baseball jerseys and 70% for each of the 50 hours of the batting training up front. The remaining 75% of the payment for the jerseys is due upon delivery. The remaining 30% for each training hour should be paid at the time of training. Lawler Inc. will provide the baseball jerseys on January 15, Year 1. The batting training will be scheduled as needed, but all trainings must be completed by January 31, Year 1, or Gremer Co. forfeits its deposit for any portion of unused trainings.

During the month of January, Lawler Inc. had the following transactions with Gremer Co. related to the contract:

• January 2: Lawler Inc and Gremer Co. sign the contract and Gremer Co. makes the required payments according to the contract.
• January 5: Gremer Co. schedules 12 hours of batting training for January 10, Year 1.
• January 10: Lawler Inc. provides the 12 hours of batting training that was scheduled on January 5. In addition, Gremer requests an additional 5 hours of training, which Lawler Inc. agrees to and completes. Gremer Co. remits the appropriate amount.
• January 15, Year 1: Gremer Co. picks up the 250 baseball jerseys ordered on January 2, Year 1.
• January 18, Year 1: Gremer schedules 33 more hours of batting for different dates in the future, and Lawler Inc. provides 10 hours of batting training to Gremer Co. that day. Gremer remits the appropriate amount to Lawler.
• January 20, Year 1: Lawler Inc. provides 10 hours of batting training to Gremer Co., and Gremer remits the appropriate amount to Lawler Inc.
• January 30, Year 1: Lawler Inc. provides 12 hours of batting training to Gremer Co., and Gremer remits the appropriate amount to Lawler Inc.
• January 31, Year 1: Lawler Inc. makes all necessary adjusting entries related to the contract with Gremer.

Entry to record January 2 transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2
3
4

Entry to record January 5^nd transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2		123	123
3		123	123

Entry to record January 10^th transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2		123	123
3		123	123
4		123	123

Entry to record January 15^th transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2		123	123
3		123	123
4		123	123
5		123	123
6		123	123

Entry to record January 18^th transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2		123	123
3		123	123
4		123	123

Entry to record January 20^th transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2		123	123
3		123	123
4		123	123

Entry to record January 30^th transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2		123	123
3		123	123
4		123	123

Entry to record January 31^th transaction with Gremer Co.

	A	B	C
1	Account Name	Debit Amounts	Credit Amounts
2		123	123
3		123	123