Crane 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. Crane Bandle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $471. The standalone selling price of the tablet is $243 (the cost to Crane Tailors is $163). Crane Tailors sells the Internet access service independently for an upfront payment of $283. On January 2, 2025, Crane Tailors signed 100 contracts, receiving a total of $47.100 in cash. Crane 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 $565, Crane Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $159. Crane Tailors signed 180 contracts for Crane Bundle B on July 1, 2025, receiving a total of $101,700 in cash 2. In response to competitive pressure for Internet access for Crane Bundle A, after 2 years of the 3-year contract, Crane Tailors 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 $84 (which equals the standalone selling price of the revised Internet service package) extends access for 2 more years of Internet connection 40 Crane Bundle A customers sign up for this offer

Crane 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. Crane 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 $471. The standalone selling price of the tablet is \$243 (the cost to Crane Tailors is \$163). Crane Tailors sells the internet access service independently for an upfront payment of $283. On January 2, 2025, Crane Tailors signed 100 contracts, receiving a total of $47,100 in cash. 2. Crane 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 \$565. Crane Tailors provides the 3 -year tablet service plan as a separate product with a standalone selling price of $159. Crane Tailors signed 180 contracts for Crane Bundle B on July 1,2025, receiving a total of $101,700 in cash. In response to competitive pressure for Internet access for Crane Bundle A after 2 years of the 3-year contract, Crane Tailors 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 $84 (which equals the standalone selling price of the revised Internet service package) extends access for 2 more vears of Internet connection. 40 Crane Bundle A customers sign up for this offer. (a) Prepare the journal entry when the contract is signed on January 2, 2027, for the 40 extended contracts. Assume the modification does not result in a separate performance obligation. (Credit occount titles ore automatically indented when the amount is entered. Do not indent manually: If no entry is required, select "No entry" for the account titfes and enter o for the amounts. List debit entry before credit entry.) Prepare the journal entry when the contract is signed on January 2, 2027, for the 40 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 o for the amounts. List debit entry before credit entry.) eTextbook and Media List of Accounts Attempts: 0 of 4 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above