Question: Economy Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Economy's main products are as follows. Refrigerator $500 ($260)

Range $560 ($275)

Stackable washer/dryer unit $700 ($400)

Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800. The bundle price includes delivery and installation. Economy provides delivery and installation as a standalone service for any of its products for a price of $100. For all sales, Economy offers a 60-day return privilage and estimates, based on prior experience with sales on this product, 4% o the units will be returned.

YellowCard Property Managers operates upscale student apartment buildings. On May 1, 2014, Economy signs a contract with YellowCard for 300 appliance bundles to be delivered and installed in one of its new buildings. The contract with YellowCard requiers 20% payment by May 15, 2014 with the balace due upon delivery and installation no later than August 1, 2014. Although Economy has never done business with YellowCard before, they have done a credit check on YellowCard and find that YellowCard meets thier normal credit requirements. YellowCard pays 20% cash on May 15th. It would help YellowCard secure lease agreements with students if the delivery and istallation of the appliance bundles can be completed by July 1, 2014. When YellowCard makes the May 15 payment, it also offers a 10% bonus payment if Economy can complete delivery and installation by July 1, 2014. Economy estimates its chances of meeting the bonus deadline to be 60%, based on number of prior contracts of similar scale.

Assume that Economy does complete and install the bundles by July 1, 2014. Provide a description of what would be recorded for each significnat date (May 1, May 15, July 1, August 1) No journal entries or amounts- just provide a description on the accounting.

The description must be done using the new Revenue recognition process not the "Current"