BillyHardware takes pride as the "shop around the corner" that can compete with the big-box home improvement stores by providing good service from knowledgeable sales associates (many of whom are retired local handymen).Billyhas developed the following two revenue arrangements to enhance its relationships with customers and increase its bottom line:

1.		Billysells a specialty portable generator that is popular with many of the local customers for use at their cabins. TheBillygenerator is a standard manufacture generator thatBillymodifies so the generator can be used for a variety of tasks.Billysold60of these generators during 2020 at a total price of $120,000, with a warranty guarantee that the product was free of any defects. The cost of generators sold is $84,000. The assurance warranties extend for a 3-year period with an estimated cost of $3,500. In addition,Billysold extended warranties related to10Billygenerators for 2 years beyond the 3-year period for $300each.
2.		To bolster its already strong customer base,Billyimplemented a customer loyalty program that rewards a customer with 1 loyalty point for every $10 of purchases on a select group ofBillyproducts. Each point is redeemable for a $1 discount on any purchases ofBillymerchandise in the following 2 years. During 2025, customers purchased select group products for $200,000(all products are sold to provide a 40% gross profit) and earned20,000points redeemable for future purchases. The standalone selling price of the purchased products is $200,000. Based on prior experience with incentives programs like this,Billyexpects14,000points to be redeemed related to these sales (Billyappropriately uses this experience to estimate the value of future consideration related to bonus points).

(b)

Prepare the journal entries forBillyrelated to the sales ofBillygenerators with warranties.(List all debit entries before credit entries. 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,125.)

Account Titles and Explanation	Debit	Credit
enter an account title to record sales	enter a debit amount	enter a credit amount
enter an account title to record sales	enter a debit amount	enter a credit amount
enter an account title to record sales	enter a debit amount	enter a credit amount
(To record sales)
enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
(To record cost of goods sold)

(c)

Prepare the journal entries for the bonus point sales forBillyin 2025.(List all debit entries before credit entries. 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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,125.)

Account Titles and Explanation	Debit	Credit
enter an account title to record sales	enter a debit amount	enter a credit amount
enter an account title to record sales	enter a debit amount	enter a credit amount
enter an account title to record sales	enter a debit amount	enter a credit amount
(To record sales)
enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
(To record cost of goods sold)

(d)

How much additional sales revenue is recognized byBillyin 2026, assuming8,000bonus points are redeemed.Billycontinues to expect that the additional6,000points will be redeemed based on the original estimate(Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,125.)

Additional Sales Revenue

$enter the additional sales revenue in dollars