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 Unearned Warranty Revenue Warranty Expense Warranty Liability

Problem 18-2 (Part Level Submission) Metlock 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. Metock 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 $505. The standalone selling price of the tablet is $263 (the cost to Metlock Company is $160). Metlock Company sells the Internet access service independently for an upfront payment of $296. On January 2, 2017, Metlock Company signed 100 contracts, receiving a total of $50,500 in cash Metlock Bundle B includes the tablet and Internet service plus a service plan for the 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 $607. Metlock Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $145. Metlock Company signed 190 contracts for Metlock Bundle B on July 1, 2017, receiving a total of $115,330 in cash. 1. 2. In response to competitive pressure for Internet access for Metlock Bundle A, after 2 years of the 3-year contract, Metlock Company offers a modified contract and extension incentive. The extended contract services are similar to those provided in the first 2 years of the contract. Signing the extension and paying $92 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection. 30 Metlock Bundle A customers sign up for this offer Prepare the journal entry when the contract is signed on January 2, 2019, for the 30 extended contracts. Assume the modification does not result in a separate performance obligation. (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.) Problem 18-2 (Part Level Submission) Metlock 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. Metock 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 $505. The standalone selling price of the tablet is $263 (the cost to Metlock Company is $160). Metlock Company sells the Internet access service independently for an upfront payment of $296. On January 2, 2017, Metlock Company signed 100 contracts, receiving a total of $50,500 in cash Metlock Bundle B includes the tablet and Internet service plus a service plan for the 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 $607. Metlock Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $145. Metlock Company signed 190 contracts for Metlock Bundle B on July 1, 2017, receiving a total of $115,330 in cash. 1. 2. In response to competitive pressure for Internet access for Metlock Bundle A, after 2 years of the 3-year contract, Metlock Company offers a modified contract and extension incentive. The extended contract services are similar to those provided in the first 2 years of the contract. Signing the extension and paying $92 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection. 30 Metlock Bundle A customers sign up for this offer Prepare the journal entry when the contract is signed on January 2, 2019, for the 30 extended contracts. Assume the modification does not result in a separate performance obligation. (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.)