a) Colbert sells 3D printer systems. Recently, Colbert provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Colbert sells Lyle Cartright a 3D system, receiving a $5,000 zero-interest-bearing note on January 1, 2020. The cost of the 3D printer system is $4,000. Colbert imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2020, and compute the total amount of revenue to be recognized in 2020.

b) Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows.

		Redemption Total
March 31		50%
April 30		80%
June 30		85%

Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30.

c) Colbert sells 3-D printers along with a number of retail items. The package price and standalone selling prices of each item are as follows. The printer and stand are often sold as a bundle with the bundling discount noted below.

Item		Standalone Selling Price			Price When Bundled			Bundling Discount
3-D printer (cost $4,000)		$5,000			$4,500			$500
Custom stand (cost $200)		450			450			0
Special 3-D paper (cost $135)		175			175			0
Total for bundle		$5,625			$5,125			$500

Due to the timing of deliverythe paper is delivered 6 months after the printer is delivered to the customerColbert chooses to account for two performance obligations: (1) the printer and stand, and (2) the plastic. Prepare the journal entries for Colbert on (a) March 1, 2020, when Colbert receives $51,250 for the sale of 10 printer bundles, and (b) September 1, 2020, when the plastic is delivered to customers.