On 1 August 2021, DFM Ltd, which is Dairy Farming Motors (DFM) Ltd manufacturers various equipment used in dairy farming and provides maintenance services, entered into a contract with a customer, Fat Cow Ltd (FCL), to deliver a Milking machine and to provide free maintenance service for the machine at the end of 6 months. The agreed contract price is $60,000. Both DFM Ltd and FCL signed the contract and are willing to perform their respective obligations. Details are as follows:

15 September 2021 - the Milking machine will be delivered.

15 March 2022 - Free maintenance service will be provided.

DFM Ltd requires a deposit of 10% to be paid on the date the contract is signed. The remaining amount will be paid on the delivery date of the machine. If DFM Ltd delivers later than the dates specified above, FCL will get a 5% discount on the total contract price.

The price of a similar Milking machine excluding any offer is $55,000. A similar maintenance service at the end of 6 months is usually sold at $7,500 to other customers.

DFM Ltd received a 10% deposit from FCL at the time they signed the contract. The machine was delivered on the agreed date by DFM Ltd and FCL paid the balance amount on this date. The free maintenance service was performed on 15 March 2022 as agreed.

Megan Adams, who recently joined as an Assistant accountant of DFM Ltd, is struggling to understand how to account for revenue under NZ IFRS 15. She seeks your advice in recognising revenue with the contract with FCL.

Required

1. prepare all journal entries for the above contract with FCL on the correct dates.