Pharoah 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 Pharoah 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 $512 The standalone selling price of the tablet is $246 (the cost to Pharoah Company is $174) Pharoah Company sells the Internet access service independently for an upfront payment of $312 On January 2, 2020, Pharoah Company signed 100 contracts, receiving a total of $51,200 in cash 2 Pharoah 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 $619 Pharoah Company provides the 3 year tablet service plan as a separate product with a standalone selling price of $160 Pharoah Company signed 200 contracts for Pharoah Bundle B on July 1, 2020, receiving a total of $123,800 in cash In response to competitive pressure for Internet access for Pharoah Bundle A, after 2 years of the 3 year contract, Pharoah 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 $97 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection 30 Pharoah Bundle A customers sign up for this offer (a) Your answer is partially correct Try again Prepare the journal entry when the contract is signed on January 2, 2022, for the 30 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 0 for the amounts ) Account Titles and Explanation Debit Credit cash

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Pharoah 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

Pharoah 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.		Pharoah 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 $512. The standalone selling price of the tablet is $246 (the cost to Pharoah Company is $174). Pharoah Company sells the Internet access service independently for an upfront payment of $312. On January 2, 2020, Pharoah Company signed 100 contracts, receiving a total of $51,200 in cash.
2.		Pharoah 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 $619. Pharoah Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $160. Pharoah Company signed 200 contracts for Pharoah Bundle B on July 1, 2020, receiving a total of $123,800 in cash.

In response to competitive pressure for Internet access for Pharoah Bundle A, after 2 years of the 3-year contract, Pharoah 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 $97 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection. 30 Pharoah Bundle A customers sign up for this offer.

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(a)


	Your answer is partially correct. Try again.

Prepare the journal entry when the contract is signed on January 2, 2022, for the 30 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 0 for the amounts.)