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Gourmand Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meal kits to the customer's home.

Single meal kits can be purchased at grocery stores. Approximately $10\%$ of the kits shipped to grocery stores each month are returned unsold and are then discarded. Gourmand charges the grocery stores $$12$ for each meal kit. In December $2020,$ Gourmand began selling three$-$month subscriptions for $$720.$ Subscriptions are paid in advance and are non$-$cancellable. Gourmand sold $660$ subscriptions on December $1,2020$ which entitle the subscriber to $15$ meal kits each month beginning in December $2020.$ During December, $4,500$ meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have $30-$day terms of payment with Gourmand.

Determine how much revenue Gourmand Dinner Box would be able to recognize in December $2020.$

Revenue Recognized in December $2020($Sales by Subscription$)$

$

Revenue Recognized in December $2020($Sales at Grocery Stores$)$

$

$$

$$

eTextbook and Media

List of Accounts

Based on your analysis in part $"$a$,"$ prepare the required journal entries for the contract. Gourmand records adjusting journal entries monthly. Ignore any related costs to prepare the meal kits. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

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