Accounts: Cash, Deferred Revenue - Coupons, and Sales Revenue

Problem 7 (sale with material right| Assume that on July 1, 2020 you paid cash to purchase a television from Best Buy for $500. As part of a promotional effect, Best Buy gives you a coupon that allows you to buy a wall mount for the TV for $20. The wall mount normally sells for $80. The coupon expires after 30 days. Based on historical records, Best Buy estimates that 50% of customers utilize the coupon to buy the wall mount. Customers cannot obtain this special deal on the wall mount by any other means. Assume that Best Buy uses the residual method to estimate the stand-alone selling price of the TV without the discount coupon if such estimation is needed. The television comes with a manufacturer's one-year quality assurance warranty. 1. Prepare the journal entry made by Best Buy to record the sale to you. 2. Prepare the journal entry made by Best Buy assuming that you use the coupon to purchase the wall mount. 3. Prepare the journal entry (if needed) made by Best Buy assuming that you allow the coupon to lapse