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Problem I TWU Corp. Co. manufactures low-price, no-frills copiers that are in great demand for rental units. Pricing and cost information on TWU Corp. main products are as follows with as Selling Price (Cost). Copier A $450 ($350) Copier B 300 (175) Copier C 400 (200) Customers can contract to purchase either individually at the stated prices or a three-copier (one of each) bundle with a price of $1,060. The bundle price includes delivery and installation. TWU also provides installation (not a separate performance obligation). Instructions: Respond to the requirements related to the following independent revenue Copier Agreements for TWU Corp. Co.

(a) On March 1, 2017, TWU Corp. sold 200 Copier C units without installation to Sunshine Rentals for $80,000. Sunshine is a newer customer and is unsure how this product will work in its older rental units. TWU Corp. offers a 90-day return privilege and estimates, based on prior experience with sales on this product, 8% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on March 1, 2017.

(b) Seashore Property Managers manages multiple student apartment buildings. On June 1, 2017, TWU signs a contract with Seashore for 600 copier bundles to be delivered and installed in several of its new buildings. Seashore pays 25% cash at contract signing and will pay the balance upon installation no later than August 1, 2017. Prepare journal entries for TWU on (1) June 1, 2017, and (2) August 1, 2017, when all copiers are installed.

(c) Refer to the Copier B agreement in part (b). It would help Seashore secure lease agreements with students if the installation of the copier bundles can be completed by July 1, 2017. Seashore offers a 10% bonus payment if TWU can complete installation by July 1, 2017. TWU estimates its chances of meeting the bonus deadline to be 80%, based on several prior contracts of similar scale. Repeat the requirement for part (b), given this bonus provision. Assume installation is completed by July 1, 2017. (

d) Pacific Rentals would like to take advantage of the bundle price for its 200-unit project; on April 1, 2017, TWU signs a contract with Pacific for 200 bundles. Under the agreement, TWU azy will hold the appliance bundles in its warehouses until the new rental units are ready for installation. Pacific pays 20% cash at contract signing. On May 1, 2017, TWU completes manufacture of the copiers in the Pacific bundle order and places them in the warehouse. TWU and Pacific have documented the warehouse Copier B agreement and identified the units designated for Pacific. The units are ready to ship, and TWU may not sell these units to other customers. Prepare journal entries for (1) April 1

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