On June 1, 2020, Cheyenne sold 90 washer/dryer units without installation to Laplante Rentals for $63,900. Laplante is a newercustomer and is unsure how this product will work in its older rental units. Cheyenne offers a 60-day return privilege andestimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries forthe sale and related cost of goods sold on June 1, 2020. (Credit account titles are automatically indented when the amount isentered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebitCredit63,900Sales Revenue63,900(To record sales)Cost of Goods Sold35,100Inventory35,100(To record cost of goods sold) Cheyenne Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and costinformation on Cheyenne's main products are as follows.StandaloneItemSelling Price (Cost)Refrigerator$510($260 )Range570(280 )Stackable washer/dryer unit710(390 )Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,830. The bundleprice includes delivery and installation. Cheyenne also provides installation (not a separate performance obligation).Respond to the requirements related to the following independent revenue arrangements for Cheyenne Appliance Co.

On June 1, 2020, Cheyenne sold 90 washer/dryer units without installation to Laplante Rentals for $63,900. Laplante is a newer customer and is unsure how this product will work in its older rental units. Cheyenne 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.)

On June 1, 2020, Cheyenne sold 90 washer/dryer units without installation to Laplante Rentals for $63,900. Laplante is a newer customer and is unsure how this product will work in its older rental units. Cheyenne 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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