Oriole Company manufactures equipment. Oriole's products range from simple automated machinery to complex systems containing numerous components, Unit selling prices range from $ 235,000 to $ 1.620,000, and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment to perform to specifications. Oriole has the following arrangement with Winkerbean Inc. Winkerbean purchases equipment from Oriole on May 2, 2020, for a price of $ 1.080,000 and contracts with Oriole to install the equipment. Oriole charges the same price for the equipment irrespective of whether it does the installation or not. Oriole determines that the installation service is estimated to have a fair value of $ 59,000. The cost of the equipment is $ 600,000 Winkerbean is obligated to pay Oriole the $ 1,021,000 upon delivery of the equipment and the balance on the completion of the installation Oriole delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. Assume that the equipment and the installation are two distinct performance obligations that should be accounted for separately Oriole does not have market data with which to determine the stand-alone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $ 37,500; Oriole prices these services with a 20% margin relative to cost * Your answer is incorrect. Allocate the transaction price of $ 1.080,000 among the performance obligations of the contract? Assume Oriole follows IFRS. (Round percentage allocations to 2 decimal places, eg. 12.25 and final answers to O decimal places, eg. 5,275.) Delivery equipment $ 1024056 Installation $ 55944 Prepare any journal entries for Oriole on May 2, June 1, and September 30, 2020. (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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit May 2 2020 No Entry No Entry June 1, 2020 Accounts Receivable 1080000 Sales Revenue Unearned Revenue (To record sales) June 1, 2020 Cost of Goods Sold 600000 Inventory (To record cost of goods sold) LINE September 30, 2020 E M Cullumber Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms fob, shipping point and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer's expense. Sales are made only to retailers who have good credit ratings. Past experience indicates that the normal return rate is 12% and the average collection period is 72 days. The company follows IFRS. On August 8, 2020, Cullumber shipped books invoiced at $28.000.000 (cost $22.000.000). Prepare the journal entry to record this transaction, including the expected returns. (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 for the amounts) Date Account Titles and Explanation Debit Credit August 8, 2020 Sales Returns and Allowances Accounts Receivable Sales Revenue (To record sale on account) August 8, 2020 (To record cost of goods sold) On October 3, 2020, 51,700,000 million of the invoiced July sales were returned according to the return policy, and the remaining $26,300,000 million was paid. Prepare the journal entries for the return and payment. (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 for the amounts. Round answers to decimal palces, eg. 5,275.) Debit Credit Date Account Titles and Explanation October 3.2020 Sales Returns and Allowances (To record return from customer) October 3, 2020 (To record return of inventory) October 3.2020 Cash Accounts Receivable (To record collection on account) e Textbook and Media On August 8, 2020, Cullumber shipped books invoiced at $28,000,000 cost $22,000,000). Prepare the journal entry to record this transaction, including the expected returns. Cullumber follows ASPE. (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 for the amounts) Debit Credit Date Account Titles and Explanation August 8, 2020 (To record sale on account) August 8, 2020 (To accrue for sales returns) August 8, 2020 (To record cost of goods sold) On October 3, 2020,$1,700,000 million of the invoiced Julysales were returned according to the return policy, and the remaining $26,300,000 million was paid. Prepare the journal entries for the return and payment Cullumber follows ASPE. (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 Ofor the amounts.) Date Account Titles and Explanation Debit Credit October 3.2020 (To record return from customer) October 3, 2020 (To record return of inventory) October 3. 2020 (To record collection on account)