a. Colbert sells 3-D printer systems. Recently, Colbert provided a special promotion of zero-interest financing for 2 years on any new 3-D printer system. Assume that Colbert sells Lyle Cartright a 3-D system receiving a $6,800 zero-interest-bearing note on January 1, 2014. The cost of the 3-D printer system is $3,500. Colbert imputes a 5% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2014. Compute the total amount of revenue to be recognized in 2014.

b. Colbert sells 20 nonrefundable $100 gift cards for 3-D printer paper on March 1, 2014. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2014. 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 2014 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:

Item	Standalone Selling Price	Price When Bundled	Bundling Discount
3-D printer (cost $4,032)	$5,100	$4,400	$700
Custom stand (cost $235)	445	445	0
Special 3-D paper (cost $140)	180	180	0
Total for bundle	$5,725	$5,025	$700

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 paper. Prepare the journal entries for Colbert on (a) March 1, 2014, when Colbert receives $50,250 for the sale of 10 printer bundles, and (b) September 1, 2014, when the paper is delivered to customers.