Problem 18-05 (Part Level Submission)

Sunland Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Sunlands products. Pricing and cost information on three of Sunlands most popular products are as follows.

Item		Standalone Selling Price (Cost)
Mini-trencher		$ 3,500	($2,000	)
Power fence hole auger		1,300	(900	)
Grain/hay dryer		12,800	(11,500	)

Respond to the requirements related to the following independent revenue arrangements for Sunland Ranch & Farm.

Sunland sells three grain/hay dryers to a local farmer at a total contract price of $42,000. In addition to the dryers, Sunland provides installation, which has a standalone selling price of $1,100 per unit installed. The contract payment also includes a $1,300 maintenance plan for the dryers for 3 years after installation. Sunland signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Sunland. Prepare the journal entries for Sunland in 2020 related to this arrangement. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
Jun. 20, 2020
Jun. 20, 2020Oct. 1, 2020Dec. 31, 2020
	(To record payment received)
	(To record sales)
	(To record cost of goods sold)
Jun. 20, 2020Oct. 1, 2020Dec. 31, 2020