Respond to the requirements related to the following independent revenue arrangements for Economy Appliance Co.

Problem 18A-4 (Part Level Submission) Economy Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Economy'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 $1,624. The bundle price includes delivery and installation. Economy provides delivery and installation as a standalone service for any of its products for a price of $91. Respond to the requirements related to the following independent revenue arrangements for Economy Appliance Co.  (a) On June 1, 2014, Economy sold 101 washer/dryer without installation units to Laplante Rentals for $69,690. Laplante is a newer customer and is unsure how this product will work in its older rental units. Economy 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, 2014. (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. Round answers to 0 decimal places, e.g. 5,275.) 

 

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