Prepare the summary journal entry for the cash sale

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Question - Best Lawn Care Inc. (BLC) offers its customers two lawn maintenance services. One service is for a one-year maintenance plan at a cost of $220. Customers can earn a 5% discount from this price if they pay before BLC's calendar fiscal year for maintenance services to be performed in the following year. The second service offered by BLC is a three-year maintenance plan that sells for $570. The first year's maintenance service for this three-year plan will be delivered before BLC's fiscal year-end. No discount for early payment is offered for the second plan.

Required -

a) Prepare the summary journal entry for the cash sale of 220 one-time plans for the current year, 100 discounted one-time plans for the following year, and 320 three-year maintenance plans.

b) Determine the statement of financial position (SFP) classification of the unearned portion of the revenue collected.

- Current portion of the unearned revenue $

- Non-current portion of the unearned revenue $

Reference no: EM132696979

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