Metlock Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Metlock's products. Pricing and cost information on three of Metlock's most popular products are as follows. Item Mini-trencher Power fence hole auger Grain/hay dryer Standalone Selling Price (Cost) $3,600 $2,100) 1,200 (800) 13,200 (10,500) Respond to the requirements related to the following independent revenue arrangements for Metlock Ranch & Farm. Metlock sells three grain/hay dryers to a local farmer at a total contract price of $42,900. In addition to the dryers, Metlock provides installation, which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,200 maintenance plan for the dryers for 3 years after installation. Metlock signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Metlock. Prepare the journal entries for Metlock in 2020 related to this arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to decimal places, e.g. 5,275.) Date Debit Credit Account Titles and Explanation Cash Jun. 20, 2020 8580 Accounts Receivable Unearned Sales Revenue Unearned Service Revenue - Installation Unearned Service Revenue - Maintenance Oct. 1, 2020 Cash Accounts Receivable (To record payment received) Unearned Sales Revenue Unearned Service Revenue - Installation Sales Revenue Service Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) NI Dec 31, 2020 |