Sky Communcations (SKY) usually sells a cell phone for $344 plus 12 months of cellular service for $516. SKY has a special, time-limited offer in which it gives the phone for free and sells the 12 months of cellular service for $460. Each phone costs SKY $150, which it accounts for in its perpetual inventory system. On July 1, SKY sells one of the special packages, delivers the phone, collects the $460 cash, and starts the cellular service. What journal entries would SKY record on July 1 and July 31?

record receipt of cash

date debit credit

July 01 cash 460