Allocate Transaction Price, Discounts, Time Value. Chef Grill Company sells outdoor grilling products, providing gas and

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Allocate Transaction Price, Discounts, Time Value.
Chef Grill Company sells outdoor grilling products, providing
gas and charcoal grills, accessories, and installation services for
custom patio grilling stations.
Instructions
Respond to the requirements related to
the following independent revenue arrangements for Chef Grill
products and services.
Chef Grill offers contract MG100 which
is comprised of a free-standing gas grill for small patio use plus
installation to a customer’s gas line for a total price 7000 AED.
On a standalone basis, the grill sells for 6000 AED (cost 3500
AED), and Chef Grill estimates that the fair value of the
installation service (based on cost-plus estimation) is 1500 AED.
Chef Grill signed 15 MG100 contracts on May 30, 2021, and customers
paid the contract price in cash. The grills were delivered and
installed on June 15, 2021. Prepare journal
entries for Chef Grill for MG100 in May and June
2021.