Question 2 of 15 - / 12 View Policies Current Attempt in Progress Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two- year contract with BigMart Ltd. to supply it with 58,500 units at a price of $72 per unit. Cool-IT's cost to manufacture these units is $50. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory: 2020 2021 Total Air conditioning units delivered 36,500 22,000 58,500 Production costs incurred $1,825,000 $1,100,000 $2,925,000 Cash payments received $2,211,000 $1,722,000 $3,933,000 Determine how much revenue Cool-It would be able to recognize in 2020 and 2021. Revenue recognized in 2020 $ Revenue recognized in 2021 $ Prepare the required summary journal entries for the contract based on your analysis in part "a" (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2020 (To record sales revenue) (To record cost of goods sold) (To record collections on account) 2021 (To record sales revenue) (To record cost of goods sold) (To record collections on account) How would your answer to part a change if Cool-IT allowed BigMart to return any air conditioners that were returned by its customers as defective? Based on past experience, Cool-It's management estimated a return rate of 2% and that the air conditioners being returned would need to be scrapped. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit 2020 (To record sales revenue) (To record cost of goods sold) (To record collections on account) 2021 (To record sales revenue) (To record cost of goods sold) (To record collections on account)