PIS-4. (Allocate Transaction Price, Discounts, Time Value] 4 5 6 '7 Economy Appliance Co. manufactures low-price, nod'ills appliances that are in great demand for rental units. Pricing and cost information on Economy's main products are as follows. ' Item Standalone Selling Price (Cost) Refrigerator $560 {$260) Range - $560 ($275) - Staclrable washerr'dryer unit _. $760 (5400) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,801]. The bundle price includes delivery and installation. Economy provides delivery and installation as a Standalone service for any of its products for a price of $1M. Instructions Reapond to the requirements related to the following independent revenue arrangements for Economy Appliance Co. (a) On June 1, 2014, Economy sold 100 washerrdryer units without installation to Laplante Rentals for $16,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Economy otters a 60-day return privilege and estimates, based on prior experience wlTJ'l sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2014. (b) YellowCard Property Managers operates upscale student apartment buildings. On May 1, 2014, Economy signs a contract with YellowCard for 3GB appliance bundles to be delivered and installed in one of its new buildings. YellowCard pays 20% cash at contract signing and will pay the balance upon delivery and installation no later than August 1, 2014. Prepare journal entries for Economy on (1) May 1, 2014, and [2) August I. 2014, when all appliances are delivered and installed