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Sunland Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Sunland's main products are as
Sunland Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Sunland's main products are as follows. Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,790. The bundle price includes delivery and installation. Sunland also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Sunland Appliance Co. Sweet Acacia Property Managers operates upscale student apartment buildings. On May 1, 2025, Sunland signs a contract with Sweet Acacia for 320 appliance bundles to be delivered and installed in one of its new buildings. Sweet Acacia pays 20% cash at contract signing and will pay the balance upon installation no later than August 1, 2025. Prepare journal entries for Sunland on (1) May 1, 2025, and (2) August 1, 2025, when all appliances are installed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
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