1. Problem 18-04 2. Bridgeport Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Bridgeport’s main products are as follows. Item Standalone Selling Price (Cost) Refrigerator $500 ($260 ) Range 570 (270 ) Stackable washer/dryer unit 690 (400 ) 3. Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,800. The bundle price includes delivery and installation. Bridgeport also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Bridgeport Appliance Co. On June 1, 2020, Bridgeport sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Bridgeport 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. Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) YellowCard Property Managers operates upscale student apartment buildings. On May 1, 2020, Bridgeport signs a contract with YellowCard for 280 appliance bundles to be delivered and installed in one of its new buildings. YellowCard pays 20% cash at contract signing and will pay the balance upon installation no later than August 1, 2020. Prepare journal entries for Bridgeport on (1) May 1, 2020, and (2) August 1, 2020, when all appliances are installed No. Date Account Titles and Explanation Debit Credit (1) May 1, 2020 (2) Aug. 1, 2020 (To record sales) (To record cost of goods sold)
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