Accounts Receivable Accounts Payable Advertising Expense Allowance for Sales Returns and Allowances Billings on Construction in Process Cash Cash, Parts, Labor Commission Expense Commission Revenue Construction in Process Construction Expenses Contract Asset Contract Liability Cost of Goods Sold Cost of Installment Sales Deferred Gross Profit Delivery Expense Discount on Notes Receivable Estimated Inventory Returns Finished Goods Inventory Franchise Revenue Freight- Out Gain on Repossession Income Summary Installment Accounts Receivable Installment Sales Revenue Interest Expense Interest Revenue Inventory Inventory on Consignment Liability to Bonus Point Customers Liability to Enyart Company Liability to Werner Metal Company License Revenue Loss from Long-Term Contracts Loss on Repossession Materials, Cash, Payables No Entry Notes Receivable Operating Expenses Payable to Consignor Purchases Realized Gross Profit Repossessed Merchandise Retained Earnings Returned Inventory Revenue from Consignment Sales Revenue from Franchise Fees Revenue from Long-Term Contracts Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Unearned Franchise Revenue Unearned Sales Revenue Unearned Service Revenue - Internet Unearned Service Revenue - Maintenance Unearned Warranty Revenue Warranty Expense Warranty Liability

Problem 18-1 Pronghorn Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. Pronghorn Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $523. The standalone selling price of the tablet is $248 (the cost to Pronghorn Company is $178). Pronghorn Company sells the Internet access service independently for an upfront payment of $323. On January 2, 2017, Pronghorn Company signed 100 contracts, receiving a total of $52,300 in cash. Pronghorn Bundle B includes the tablet and Internet service plus a service plan forthe tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $633. Pronghorn Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $145. Pronghorn Company signed 200 contracts for Pronghorn Bundle B on July 1, 2017, receiving a total of $126,600 in cash. 1. 2. Prepare any journal entries to record the revenue arrangement for Pronghorn Bundle A on January 2, 2017, and December 31, 2017. (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 0 for the amounts. Round answers to O decimal places, e.g. 5,125.) DateAccount Titles and Explanation To record sales)