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P18.2 (LO 2, 3, 4) (Allocate Transaction Price, Modification of Contract) Refer to the Tablet Bundle A revenue arrangement in P18.1. In response to competitive

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P18.2 (LO 2, 3, 4) (Allocate Transaction Price, Modification of Contract) Refer to the Tablet Bundle A revenue arrangement in P18.1. In response to competitive pressure for Internet access for Tablet Bundle A, after 2 years of the 3 -year contract, Tablet 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 $90 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection. Forty Tablet Bundle A customers sign up for this offer. Instructions a. Prepare the journal entries when the contract is signed on January 2,2022 , for the 40 extended contracts. Assume the modification does not result in a separate performance obligation. b. Prepare the journal entries on December 31,2022 , for the 40 extended contracts (the first year of the revised 3-year contract). P18.2 (LO 2, 3, 4) (Allocate Transaction Price, Modification of Contract) Refer to the Tablet Bundle A revenue arrangement in P18.1. In response to competitive pressure for Internet access for Tablet Bundle A, after 2 years of the 3 -year contract, Tablet 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 $90 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection. Forty Tablet Bundle A customers sign up for this offer. Instructions a. Prepare the journal entries when the contract is signed on January 2,2022 , for the 40 extended contracts. Assume the modification does not result in a separate performance obligation. b. Prepare the journal entries on December 31,2022 , for the 40 extended contracts (the first year of the revised 3-year contract)

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