Master Grill Company sells outdoor grilling products, providing gas and charcoal
ID: 2469773 • Letter: M
Question
Master Grill Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations.
Respond to the requirements related to the following independent revenue arrangements for Master Grill products and services.
(a)
Date
Account Titles and Explanation
Debit
Credit
May 30
(To record cash received for installation)
May 30
(To record cash received for sale of equipment)
June 15
(To record revenue for installation of equipment)
June 15
(To record revenue for sale of equipment)
June 15
(To record cost of goods sold)
Master Grill Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations.
Respond to the requirements related to the following independent revenue arrangements for Master Grill products and services.
Explanation / Answer
Date
Account Titles and Explanation
Debit
Credit
May 30,
2014
No journal entry required
Date
Account Titles and Explanation
Debit
Credit
June 15,
2014
Cash (15 contracts × $700)
$ 10,500
Sales revenue
$ 10,500
(Recorded sale of products for cash)
Date
Account Titles and Explanation
Debit
Credit
Aug 1,
2014
Accounts receivable
$ 18,000
Sales revenue ($900 *20)
$ 18,000
(Recorded sale on account)
Date
Account Titles and Explanation
Debit
Credit
Aug 20,
2014
Cash
$ 17,640
Discounts and allowances
($18,000 *2%)
$ 360
Accounts receivable ($900 *20)
$ 18,000
(Recorded sale of products on discounts)
(2) September 29, 2014:
Date
Account Titles and Explanation
Debit
Credit
Sep 29,
2014
Accounts receivable
$ 18,000
Sales revenue ($900 *20)
$ 18,000
(Recorded sale on account)
Date
Account Titles and Explanation
Debit
Credit
May 30,
2014
No journal entry required