Waterway Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Waterways main products are as follows.

Item		Standalone Selling Price (Cost)
Refrigerator		$510	($270	)
Range		570	(280	)
Stackable washer/dryer unit		690	(400	)

Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,810. The bundle price includes delivery and installation. Waterway also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Waterway Appliance Co.

(a)

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On June 1, 2020, Waterway sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Waterway offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2020. (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.)

Account Titles and Explanation	Debit	Credit
(To record sales)
(To record cost of goods sold)

already answered part A

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(b)

YellowCard Property Managers operates upscale student apartment buildings. On May 1, 2020, Waterway signs a contract with YellowCard for 330 appliance bundles to be delivered and installed in one of its new buildings. YellowCard pays 20% cash at contract signing and will pay the balance upon installation no later than August 1, 2020. Prepare journal entries for Waterway on (1) May 1, 2020, and (2) August 1, 2020, 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.)

No.	Date	Account Titles and Explanation	Debit	Credit
(1)	May 1, 2020
(2)	Aug. 1, 2020
		(To record sales)
		(To record cost of goods sold)