a)

b)

Cullumber sells 20 non-refundable $270 gift cards for 3D printer plastic on March 1, 2020. The plastic has a stand-alone selling price of $270 (cost $216). The gift card expiration date is June 30, 2020. Cullumber estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows. Cumulative Redemption Rate to Date 50% March 31 April 30 June 30 80% 8596 Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30. (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. Record journal entries in the order presented in the problem.) 1. 2020 Cash 5400 Contract Asset/Liability 5400 31, 2020 Contract Asset/Liability 540 Sales Revenue 540 (To record sales revenue) 31.2020 Cost of Goods Sold 2160 Inventory 2160 (To record cost of goods sold) 0.2020 Contract Asset Liability Sales Revenue (To record sales revenue) 0.2020 Cost of Goods Sold Inventory (To record cost of goods sold) 0.2020 Contract Asset/Liability Sales Revenue (To record sales) 0.2020 Cost of Goods Sold 216 Inventory 216 (To record cost of goods sold) Cullumber sells 3-D printers along with a number of retail items. The package price and stand-alone selling prices of each item are as follows. The printer and stand are often sold as a bundle with the bundling discount noted below. Stand-Alone Selling Price $6,200 Price When Bundled $5,580 Bundling Discount $620 Item 3-D printer (cost $4.960) Custom stand (cost $250) Special 3- plastic (cost $170) Total for bundle 560 560 -0 220 220 -0- $6,980 $6,360 $620 Due to the timing of the delivery-the plastic is delivered six months after the printer is delivered to the customer-Cullumber chooses to account for two performance obligations: (1) the printer and stand, and (2) the plastic Prepare the journal entries for Cullumber on March 1, 2020, when Cullumber receives $63,600 for the sale of 10 printer bundles, and September 1, 2020, when the plasticis delivered to customers. (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 for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) P Pli DI MO TO (To record sales) Il (To record cost of goods sold)