Pharoah's Agency sells an insurance policy offered by Blossom Insurance Company for a commission of $250. In addition. Pharoah will receive a further commission of $36 each year for as long as the policyholder does not cancel the policy. After selling the policy, Pharoah does not have any remaining performance obligations. Based on its significant experience with these types of policies, Pharoah estimates that policyholders on average renew the policy for 4.5 years. It has no evidence to suggest that previous policyholder behaviour will change. COMPLETE PART B

Pharoah's Agency sells an insurance policy offered by Blossom Insurance Company for a commission of $250. In addition, Pharoah will receive a further commission of $36 each year for as long as the policyholder does not cancel the policy. After selling the policy, Pharoah does not have any remaining performance obligations. Based on its significant experience with these types of policies, Pharoah estimates that policyholders on average renew the policy for 4.5 years. It has no evidence to suggest that previous policyholder behaviour will change. (a) Determine the transaction price of the arrangement for Pharoah, assuming 155 policies are sold. Transaction price \$ eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) Prepare the journal entry, assuming that the 155 policies are sold in January 2023 and that Pharoah receives cash for commissions from Blossom. (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. List all debit entries before credit entries.)