Carla Vista's Agency sells an insurance policy offered by Pharoah Insurance Company for a commission of $$350.$ In addition, Carla

Vista will receive a further commission of $$24$ each year for as long as the policyholder does not cancel the policy. After selling the

policy, Carla Vista does not have any remaining performance obligations. Based on its significant experience with these types of

policies, Carla Vista estimates that policyholders on average renew the policy for $3\mathrm{.}5$ years. It has no evidence to suggest that previous

policyholder behaviour will change.

$($a$)$

Your answer is correct.

Determine the transaction price of the arrangement for Carla Vista, assuming $170$ policies are sold.

Transaction price

$

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Attempts: $2$ of $5$ used

$($b$)$

Prepare the journal entry, assuming that the $170$ policies are sold in January $2023$ and that Carla Vista receives cash for

commissions from Pharoah. $($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. List all debit entries before credit entries.$)$