XYZ Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations.

Required:

Respond to the requirements related to the following independent revenue arrangements for XYZ products and services.

A$.$ XYZ offers contract MG$100$ which is comprised of a free$-$standing gas grill for small patio use plus installation to a customer's gas line for a total price $$700.$ On a standalone basis, the grill sells for $$600($cost $$350),$ and XYZ estimates that the fair value of the installation service $($based on costplus estimation$)$ is $$150.$ XYZ signed $15$ MG$100$ contracts on May $30,2015,$ and customers paid the contract price in cash. The grills were delivered and installed on June $15,2015.$

Prepare the necessary journal entries for XYZ for MG$100$ in May $30,2015.$

B$.$ XYZ sells its specialty combination gas$/$wood$-$fired grills to local restaurants. The company is offering a $5\%$ volume discount on purchases above $5.$ On February $1,2019,$ the company signed a contract with a local restaurant to deliver $3$ grills on March $31,2019,$ with a promise from the restaurant to purchase additional $3$ by year end. The company believes that the restaurant will honor their commitment for the additional purchase. Each grill is sold for $$900($cost $$500).$ Assuming the grills are delivered on time, prepare the necessary journal entries to record the signing of the contract on February $1$ and the delivery of the grills on March $31.$

C$.xYZ$ is giving its customers a promotional offer package, where customers can buy its famous gas$/$wood$-$fired grills and a four$-$year subscription to the company's famous grill lessons service for a total price of $$400.$ The subscription to the grill lessons service is payable into equal installments of $$75$ at the end of each year $(\frac{31}{12}).$ There is also an upfront payment of $$32$ on the date of signing the contract. The standalone price of the grill lessons service is $$270$ whereas the standalone price of the gas$/$wood$-$fired grills is $$230.$ Assume an interest rate of $10\%.$ The delivery of the gas$/$wood$-$fired grills is made on the date of signing the contract. The grills cost XYZ $$160$ per unit. On $01/01/2017,$ XYZ signed $50$ contracts with customers.

a$.$ Prepare the necessary journal entry on $\frac{01}{01}\frac{?}{{2017}_{?}}$ to record the signing of the contracts.

b$.$ Calculate the total amount of revenue that would be reported in Garmin's Income Statement of ${2018}_{?}$ in relation to the above scenario.