Please answer the question in it's entirety.

ONLY POSSIBLE JOURNAL ACCOUNTS:

Cash, Sales Revenue, or Deferred Revenue

Please explain the rationale behind journal entry amounts. Thank you.

9 A B C E F 1 Problem 2 [multiple POs, stand-alone price not known] 2 On August 1, 2020, ABC contracted with XYZ to provide the following products for a total bundled price 3 of $100,000. 4 5 Product 1 - stand-alone selling price is $24,000 6 Product 2 - stand-alone selling price is unknown 7 The obligation to provide Product 1 is satisfied over time (over the 12 months beginning August 1, 2020). 8 The obligation to provide Product 2 is satisfied when control over the products passes to the customer (which occurred at the August 1, 2020 delivery date ). 10 11 Both products include a one-year quality assurance warranty that obligates ABC to repair or replace any 12 product that proves to be defective during the one-year warranty period. 13 This was a cash sale with XYZ making cash payment on the August 1, 2020 delivery date. 14 15 The fiscal year of ABC ends December 31, 2020. 16 17 1. Prepare all joumal entries and/or adjustments related to this transaction that are necessary so that ABC 18 can issue GAAP-compliant financials for the year ended December 31, 2020. Use the residual approach 19 to determine the stand-alone selling price of Product 2. 20 21 Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. 22 23 Entry on August 1, 2020: 24 Account Debit Credit 25 Cash 1 26 Deferred Revenue 1 27 Sales Revenue $100,000 1 28 29 Entry on December 31, 2020: 30 Account Debit Credit 31 2 32 2 33 34 2. Prepare all joumal entries and/or adjustments related to this transaction that are necessary so that ABC 35 can issue GAAP-compliant financials for the year ended December 31, 2020. Use the expected cost plus 36 marg in approach to determine the stand-alone selling price of Product 2. ABC estimates that the inventory 37 cost of Product 2 is $65,100. ABC normally earns a 30% gross margin on sales. 38 39 Enter your answer below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. 40 41 Entry on August 1, 2020: 42 Account Debit Credit 43 3 44 3 45 3 46 47 Entry on December 31, 2020: 48 Account Debit Credit 49 4 50 4 51