Oriole Company sells outdoor grilling products, providing gasand charcoal grills, accessories, and installation services forcustom patio grilling stations. Respond to the requirements relatedto the following independent revenue arrangements for Orioleproducts and services. Oriole offers contract MG100 which iscomprised of a free-standing gas grill for small patio use plusinstallation to a customer’s gas line for a total price $1,150. Ona standalone basis, the grill sells for $800 (cost $400), andOriole estimates that the fair value of the installation service(based on cost-plus estimation) is $200. Oriole signed 30 MG100contracts on May 30, 2021, and customers paid the contract price incash. The grills were delivered and installed on June 15, 2021.
1- Prepare journal entries for Oriole for MG100 in May and June2021
2-Oriole sells its specialty combination gas/wood-fired grillsto local restaurants. Each grill is sold for $1,600 (cost $610) oncredit with terms 3/20, net/60. Prepare the journal entries for thesale of 35 grills on August 1, 2021, and upon payment, assuming thecustomer paid on (1) August 20, 2021, and (2) September 29, 2021.Assume the company records sales net.
