3) They gave the customer a discount for purchasing an AC unit as well as a service plan for 2 years, so the total revenue collected was only $50,000. The customer agreed to pay $48,000 for the AC unit and installation on January 1st. In addition, they agreed to pay $1,000 at the end of 2021 and $1,000 at the end of 2022 for the service plan maintenance.

	Initial	Stand-Alone		Allocated
	Consideration	Selling Price	Selling Price %	Transaction Price
	AC unit and installation	50,000	94.55%	47,277
	Service plan ($1,440*2 years)	2,880	5.45%	2,723
	Total consideration	52,880	100.00%	50,000

The original entry recorded was:

Jan. 1	Cash		48,000
	Sales revenue			48,000
Dec. 31	Cash		1,000
	Sales revenue			1,000

FIRST, PROVIDE ME WITH THE ENTRY AS IT SHOULD HAVE CORRECTLY BEEN RECORDED

Jan. 1	Cash		48,000
	Sales revenue			47,277
	Unearned revenue			723
Dec. 31	Cash		1,000
	Sales revenue (2,723/2)			1,362
	Unearned revenue		362

SECOND, PROVIDE ME WITH THE ENTRY TO ADJUST THE APPICABLE ACCOUNTS.

Dec. 31
Adjusting entry