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Pearl sells 3D printer systems. Recently, Pearl provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that
Pearl sells 3D printer systems. Recently, Pearl provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Pearl sells Lyle Cartright a 3D system, receiving a $4,200 zero-interest-bearing note on January 1, 2020. The cost of the 3D printer system is $3,360. Pearl imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2020, and compute the total amount of revenue to be recognized in 2020. (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 Ofor the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) Pearl sells 20 nonrefundable $90 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $90 (cost $72). The gift cards expiration date is June 30, 2020. Pearl estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows. Redemption Total 50 % March 31 April 30 BO June 30 B5 Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30. (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 for the amounts. Round present value factor calculations to 5 decimal places, eg 1.25124 and the final answer to decimal places eg. 58,971) Date Account Titles and Explanation Debit (To record sales of cards redeemed) IE (To record cost of goods sold) (To record sales of cards redeemed) (To record cost of goods sold) IE (To record sales of cards redeemed) (To record cost of goods sold) (To record sales of cards not redeemed)
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