Coronado 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.

1.

Coronado 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 $484. The standalone selling price of the tablet is $265 (the cost to Coronado Company is $183). Coronado Company sells the Internet access service independently for an upfront payment of $274. On January 2, 2017, Coronado Company signed 110 contracts, receiving a total of $53,240 in cash.

2.

Coronado 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 $593. Coronado Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $152. Coronado Company signed 190 contracts for Coronado Bundle B on July 1, 2017, receiving a total of $112,670 in cash.

In response to competitive pressure for Internet access for Coronado Bundle A, after 2 years of the 3-year contract, Coronado 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 $99 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection. 50 Coronado Bundle A customers sign up for this offer.

Prepare the journal entry on December 31, 2019, for the 50 extended contracts (the first year of the revised 3-year contract).