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Please help!!! Problem 18-4 Headland Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units. Pricing and cost information on Headland's
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Problem 18-4 Headland Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units. Pricing and cost information on Headland's main products are as follows. Standalone Item Selling Price (Cost) Refrigerator $510 $260 570 270 Range Stackable washer/dryer unit 710 400 Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,830. The bundle price includes delivery and installation. Headland also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Headland Appliance Co. On June 1, 2017, Headland sold 110 washer/dryer units without installation to Laplante Rentals for $78,100. Laplante is a newer customer and is unsure how this product will work in its older rental units. Headland offers a 60-day return privilege and estimates, based on prior experience with 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, 2017. (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 o for the amounts) Account Titles and Explanation Debit Credit To record sales (To record cost of goods sold)Step by Step Solution
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