Assignment #1: Revenue Recognition Due: Sunday, Week 4 Points: 75 I. Allocate Transaction Price, Upfront Fees Tablet Tailors 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. 1. Tablet 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 $500. The standalone selling price of the tablet is $250 (the cost to Tablet Tailors is $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $300. On January 2, 2020, Tablet Tailors signed 100 contracts, receiving a total of $50,000 in cash. 2. Tablet 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 $600. Tablet Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $150. Tablet Tailors signed 200 contracts for Tablet Bundle B on July 1, 2020, receiving a total of $120,000 in cash.

(b)Prepare any journal entries to record the revenue arrangement for Tablet Bundle B on July 1,2020, and December31, 2020.

I need the last journal entry with 3 transactions, I don't even know if those are the correct accounts but I think so. DO NOT post another answer that has been posted because it is wrong.

29 30 31 32 33 Jul. 1 cash cells Debit Credit 120,000 revenue internet 51,400 revenue tablet 42,800 unearned revenue 25,800 (To record revenue and unearned revenue for Jul 1 revenue agreement.) Standalone price per contract: Allocated to Tablet $ Allocated to Internet Service $ Allocated to Tablet Service $ Total estimated standalone $ (round to the nearest whole dollar) 214 257 129 Enter cacluation into Allocation per contract: Tablet 214.29 Internet 257.14 Tablet Service Plan 128.57 *Total $ 600 *Total should equal the sales revenue per contract. 250 300 150 700 34 Jul. 1 35,000 35 36 37 38 39 40 cost of goods sold inventory (To record COGS 35,000 Dec. 31 41 42 43 unearned revenue unearned revenue service revenue (To record revenue for internet and maintenance services provided in 2020) 44 16