! Required information [The following information applies to the questions displayed below.] Sky Communcations (SKY) usually sells a cell phone for $270 plus 12 months of cellular service for $630. SKY has a special, time-limited offer in which it gives the phone for free and sells the 12 months of cellular service for $480. Each phone costs SKY $170, which it accounts for in its perpetual inventory system. On July 1, SKY sells one of the special packages, delivers the phone, collects the $480 cash, and starts the cellular service. 2. What journal entries would SKY record on July 1 and July 31 to recognize revenue when (or as the performance obligation is met? View transaction list Journal entry worksheet 2 > Record the receipt of cash. Note: Enter debits before credits. Date General Journal Debit Credit July 01 Record entry Clear entry View general journal ! Required information [The following information applies to the questions displayed below.] Sky Communcations (SKY) usually sells a cell phone for $270 plus 12 months of cellular service for $630. SKY has a special, time-limited offer in which it gives the phone for free and sells the 12 months of cellular service for $480 Each phone costs SKY $170, which it accounts for in its perpetual inventory system. On July 1, SKY sells one of the special packages, delivers the phone, collects the $480 cash, and starts the cellular service. 2. What journal entries would SKY record on July 1 and July 31 to recognize revenue when (or as) the performance obligation is met? View transaction list Journal entry worksheet Record the revenue earned. Note: Enter debits before credits. General Journal Debit Credit Date July 31 Record entry Clear entry View general journal