Problem 18-4 (Part Level Submission) Crane Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units. Pricing and cost information on Crane's main products are as follows. Item Refrigerator Range Stackable washer/dryer unit Standalone Selling Price (Cost) $490 ($260 ) 570 (280) 690 (410) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,790. The bundle price includes delivery and installation. Crane also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Crane Appliance Co. (b) Your answer is correct. Yellow Card Property Managers operates upscale student apartment buildings. On May 1, 2017, Crane signs a contract with Yellow Card for 320 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 installation no later than August 1, 2017. Prepare journal entries for Crane on (1) May 1, 2017, and (2) August 1, 2017, when all appliances are installed. (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.) No. Date Account Titles and Explanation Debit Credit (1) May 1, 2017 Cash 114560 Unearned Sales Revenue 114560 (2) Aug. 1, 2017 Unearned Sales Revenue 114560 Cash 458240 Sales Revenue 572800 (To record sales) Cost of Goods Sold 3040001 Inventory 304000 (To record cost of goods sold) (c) Refer to the arrangement in part (b). It would help YellowCard secure lease agreements with students if the installation of the appliance bundles can be completed by July 1, 2017. Yellow Card offers a 10% bonus payment if Crane can complete installation by July 1, 2017. Crane estimates its chances of meeting the bonus deadline to be 90%, based on a number of prior contracts of similar scale. Repeat the requirement for part (b), given this bonus provision. Assume installation is completed by July 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 1, 2017 Jul. 1, 2017 (To record sales) (To record cost of goods sold)