P$17\mathrm{.}1(L{O}_2,3)($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.

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 $2,2025,$ Tablet Tailors signed $100$ contracts, receiving a total of $$50,000$ in cash.

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 $1,2025,$ receiving a total of $$120,000$ in cash.

Instructions

a$.$ Prepare any journal entries to record the revenue arrangement for Tablet Bundle A on January $2,2025,$ and December $31,2025.$

b$.$ Prepare any journal entries to record the revenue arrangement for Tablet Bundle B on July $1,2025,$ and December $31,2025.$

c$.$ Repeat the requirements for part $($a$),$ assuming that Tablet Tailors has no reliable data with which to estimate the stand selling price for the Internet service.