Hello,

I would like to get the solution and the answer of this question. I am in a hurry, so quick response will be appreciated. Thank you.

Blue Bird is a manufacturer of above ground swimming pools. Blue Bird's pools are sold with a manufactures warranty of 1 year. At the time of a sale, the purchaser has the option to buy the pool with a 5-year extended warranty. The 5-years would begin after the end of the 1 year manufactures warranty. The following information is available regarding the manufacturer's "Floater" model of pool: 1 The normal selling price of a Floater, without the 5-year extended warranty, is $20,000. The cost of goods sold is $ 16,000. When a Floater is purchased as a package with the 5-year extended warranty, the selling price for the package is $21,000. This special offer is only available at the time of the initial purchase. If the 5-year optional extended warranty were to be purchased by itself (separate from the pool), the price would be $1,500. Blue Bird estimates that its pools will have assurance-type warranty claims of 5% of sales revenue. Blue Bird has a December 31 year end. REQUIRED 1. If BlueBird sold a Floater, for cash, without a 5-year extended warranty on January 1, prepare all of the applicable journal entries at the date of delivery associated with the sale and any year end adjusting entries