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Tom Brady Inc. is a sporting goods store that sells merchandise and provides training services to local sports clubs. On January, Year 1, Tom Brady

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Tom Brady Inc. is a sporting goods store that sells merchandise and provides training services to local sports clubs. On January, Year 1, Tom Brady Inc. negotiated a contract with Patriots Co. to provide 250 baseball jerseys for $6,000 and 50 hours of batting training in its batting cages at $50 per hour to be performed by Tom Brady's trainers at its store. The baseball jerseys cost Tom Brady Inc. $10 to make, and Tom Brady Inc. uses the perpetual method to record inventory. Normal retail pricing for these trainings are $55 per hour. The terms of the contract require Patriots to pay 25% of the total amount for the baseball jerseys and 70% for each of the 50 hours of the batting training up front. The remaining 75% of the payment for the jerseys is due upon delivery. The remaining 30% for each training hour should be paid at the time of training. Tom Brady Inc. will provide the baseball jerseys on January 15, Year 1. The batting training will be scheduled as needed, but all trainings must be completed by January 31, Year 1, or Patriots Co. forfeits its deposit for any portion of unused trainings. During the month of January, Tom Brady Inc. had the following transactions with Patriots Co. related to the contract: January 2: Tom Brady Inc and Patriots Co. sign the contract and Patriots Co. makes the required payments according to the contract January 5: Patriots Co. schedules 12 hours of batting training for January 10, Year 1. January 10: Tom Brady r Inc. provides the 12 hours of batting training that was scheduled on January 5. In addition, Patriots requests an additional 5 hours of training, which Tom Brady Inc. agrees to and completes. Patriots Co. remits the appropriate amount January 15, Year 1: Patriots Co. picks up the 250 baseball jerseys ordered on January 2, Year 1. January 18, Year 1: Patriots schedules 33 more hours of batting for different dates in the future, and Tom Brady Inc. provides 10 hours of batting training to Patriots Co. that day. Patriots remits the appropriate amount to Tom Brady. January 20, Year 1: Tom Brady Inc. provides 10 hours of batting training to Patriots Co., and Patriots remits the appropriate amount to Tom Brady Inc. January 30, Year 1: Tom Brady Inc. provides 12 hours of batting training to Patriots Co., and Patriots remits the appropriate amount to Tom Brady Inc. January 31, Year 1: Tom Brady Inc. makes all necessary adjusting entries related to the contract with Patriots. Prepare the necessary journal entries for each of the transaction dates listed above

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