*Problem 18-5 (Part Level Submission) Blue Ranch & Kingbird 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 Blue's products. Pricing and cost information on three of Blue's most popular products are as follows. Standalone Selling Price (Cost) Item Mini-trencher Power fence hole auger Grain hay dryer Respond to the requirements related to the following independent revenue arrangements for Blue Ranch & Kingbird $3,700 ($2,100) 1,300 (700) 13,000 (11,800) Your answer is partially correct. Try again Blue sells three grain/hay dryers to a local farmer at a total contract price of $42,000. In addition to the dryers, Blue provides installation, which has a standalone selling price of $900 per unit installed The contract payment also includes a $1,400 maintenance plan for the dryers for 3 years after installation. Blue signs the contract on June 20, 2017, and receives a 20% down payment from the farmer The dryers are delivered and installed on October 1, 2017, and full payment is made to Blue. Prepare the journal entries for Blue in 2017 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.) Date Account Titles and Explanation Debit Credit Cash Jun. 20, 2017 unts Receivable 35400 Unearned Sales Revenue 43800 Cash 35400 Accounts Receivable 35400 un. 20, 2017 Unearned Sales Revenue 43450 Sales Revenue 43450 To record payment received) (To record sales) Unearned Sales Revenue 43800 Cash 35400 Accounts Receivable 35400 Jun. 20, 2017 Unearned Sales Revenue 43450 Sales Revenue T43450 (To record payment received) (To record sales) (To record cost of goods sold) Attempts: 1 of 5 used
