You are the financial accountant for Best Gardens Pty Ltd, a company that provides gardening services in Sydney.You have been asked to explain to the CEO how AASB 15Revenue from contracts with customersapplies to a customer contract. The contract is signed by the customer on 1 October 2020.

• The customer purchases 50 rose bushes from Best Gardens, which will be delivered to the customer on 15 October 2020
• Best Gardens gardeners will additionally provide garden maintenance every month for 12 months, starting in October 2020
• The customer pays a 50% deposit of $3,000 on 1 October 2020, and the remaining $3,000 on 1 November 2020.

Other information:

• Customers can purchase plants from Best Gardens, which provides free delivery for all bulk orders (>20 plants).
• Garden maintenance can be purchased separately by customers, regardless of whether they purchase plants from Best Gardens.
• The stand alone selling price for the bulk purchase and delivery of rose bushes is$30 per bush
• The monthly gardening service would cost$500per month if it was purchased separately basis.

Required:

i)Accounting for revenue in accordance with AASB 15Revenue from contracts with customersis a five step process.List each step, and explain how Best Gardens should treat each step in this contract. Include all workings.

ii)Prepare journal entries for the contract for Best Gardeners for the month of October 2020, to account for all the transactions relating to the contract.