1. Question ? Carla Company sells tablet PCs combined with Internet service, which permuts the tablet to connect to the Internet anywhere and set up a Wi Fi hot spot. It offers two bundles with the following terms. Carla Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $493. The standalone selling price of the tablet is $274 (the cost to Carla Company is $172). Carla Company sells the Internet access service independently for an ipfront payment of $272. On lanuary 2, 2020, Carla Company signed 100 contracts, receiving a total of $19,300 in cash. Carla Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any reason grades to the tablet or the Internet comections) during the 3-year contract period. That product bundle sells for $598. Carla Company provides the 3 year tablet service plan as a separate product with a standalone selling price of $162. Corta Company signed 200 contracts la Bundle Bon July 1, 2020, receiving a total of $119,600 in cash. 2 Carla Prepare any journal entries to record the revenue arrangement tor Carla Bundle A on January 2, 2020, and December 21, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.y. 5,125.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) SHOW LIST OF ACCOUNTS Prepare any journal entries to record the revenue arrangement for Carla Bundle B on July 1, 2020, and December 31, 2020. (Credit account titles are automatically indented when the amount entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) SHOW LIST OF ACCOUNTS Repeat the requirements for part (a), assuming that Carla Company has no reliable data with which to estimate the standalone selling price for the Internet service. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter o for the amounts. Round answers to decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) Click if you would like to Show Work for this question: Open Show Work
