Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Only need part B to be answered cesses 1.(15 pts) Aubuchon Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services
Only need part B to be answered
cesses 1.(15 pts) Aubuchon Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Instructions: Respond to the requirements related to the following independent revenue arrangements for Aubuchon products and services. (a) Aubuchon offers contract MG100 which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price $950. On a standalone basis, the grill sells for $800 (cost $470), and Aubuchon estimates that the fair value of the installation service (based on cost-plus estimation) is $200. Aubuchon signed 15 MG100 contracts on May 30, 2018, and customers paid the contract price in cash. The grills were delivered and installed on June 15, 2018. Prepare journal entries for Aubuchon for MG100 in May and June 2018. (b) Aubuchon sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,200 (cost $670) on credit with terms 2/20, net/60. Prepare the journal entries for the sale of 20 grills on August 1, 2018, and upon payment, assuming the customer paid on (1) August 20, 2018, and (2) September 29, 2018. Assume the company records sales netStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started