SoccerHawk Merchandise Inc. enters into a 6-month contract to sell soccer balls to City Soccer.

The contract contains the following price scale:

Sales Volume Price per Soccer Ball

First 300 soccer balls sold $22

Next 200 soccer balls sold $19

Next 250 soccer balls sold $17

Additional soccer balls sold $15

On the date the contract is signed, SoccerHawk estimates based on past experience that there is a 20% chance it will sell 450 soccer balls, a 45% chance it will sell 600 soccer balls, and a 35% chance it will sell 800 soccer balls.

The company sells the following soccer balls during the 6-month contract:

Number of Soccer Balls

Month 1: 155

Month 2: 60

Month 3: 125

Month 4: 75

Month 5: 85

Month 6: 60

Total sales 560 balls

Required:

3.Prepare the journal entries for SoccerHawk assuming that City Soccer pays the amount due at the end of each month based on the sales to date.