Summer Company sells total outdoor spa solutions, providing spas, accessories, and installation services for custom spa goldens.

Instructions: Respond to the requirements related to the following independent revenue arrangements for Summer products and services.

(b) Blue Green is planning major renovations in its resorts during 2017 and enters into a contract with Summer to purchase low durable, easy maintenance, standard spas during 2017. The spas are priced at $1200 each (with a cost of $880 each), and Summer provides a 10% volume discount if Blue Green purchases at least 500 spas during 2017. On May 2, 2017, Sum-mer delivered and received payment for 450 spas. Based on prior experience with the Blue Green renovation projects, the delivery of this many spas makes it certain that Blue Green will meet the discount threshold. Prepare the journal entries for Summer for spas sold on May 2, 2017. Assume the company records sales transaction net.