The State of Kentucky is planning major renovations

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January 6th, 2018

The State of Kentucky is planning major renovations in its parks during 2017 and enters into a contract with Grill Master to purchase 400 durable, easy maintenance, standard charcoal grills during 2017. The grills are priced at $200 each (with a cost of $160 each), and Grill Master provides a 6% volume discount if Kentucky purchases at least 300 grills during 2017. On April 17, 2017, Grill Master delivered and received payment for 280 grills. Based on prior experience with the State of Kentucky renovation projects, the delivery of this many grills makes it certain that Kentucky will meet the discount threshold. Prepare the journal entries for Grill Master for grills sold on April 17, 2017. Assume the company records sales transaction net.

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