Cullumber Land Inc. is a producer and retailer of high-end custom-designed furniture and uses the contract-based approach to revenue recognition. The company produces only to special order and requires a one-third down payment before any work begins. The customer is then required to pay one-third at the time of delivery and the balance within 30 days after delivery.It is now February 1, 2024, and Cullumber Land has just accepted $4,900 as a down payment from H. Smith, a wealthy stockbroker. Per the contract, Cullumber Land is to deliver the custom furniture to Smith’s residence by June 15, 2024. Smith is an excellent customer and has always abided by the contract terms in the past. If Cullumber Land cannot make the delivery by June 15, the contract terms state that Smith has the option of cancelling the sale and receiving a full reimbursement of any down payment. It is estimated that Cullumber Land’s cost to design and manufacture the furniture ordered by Smith will be $10,290.As Cullumber Land’s accountant, prepare all journal entries related to the sale. Assume that revenue is recognized at the time of delivery.