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Wildhorse 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 Wildhorse 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 $484. The standalone selling price of the tablet is $265 (the cost to Wildhorse Company is $183). Wildhorse Company sells the Internet access service independently for an upfront payment of $274. On January 2, 2017, Wildhorse Company signed 110 contracts, receiving a total of $53,240 in cash Wildhorse 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 $593. Wildhorse Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $152. Wildhorse Company signed 190 contracts for Wildhorse Bundle B on July 1, 2017, receiving a total of $112,670 in cash. 1. 2. (a) Your answer is correct. Prepare any journal entries to record the revenue arrangement for Wildhorse Bundle A on January 2, 2017, and December 31, 2017. (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. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit Jan. 2, 2017 |Cash 53240 Sales Revenue 26,176 Unearned Service Revenue - Internet 27,064 (To record sales) Cost of Goods Sold 20,130 Inventory 20,130 (To record cost of goods sold) Dec. 31, 2017Unearned Service Revenue Internet 9,021 Service Revenue 9,021 (b) Prepare any journal entries to record therevenue arrangement for Wildhorse Bundle B on July 1, 2017, and December 31, 2017. (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. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Credit Jul. 1, 2017 Cash 112,670 Unearned Service Revenue-Internet Unearned Service Revenue-Maintenance Sales Revenue (To record sales) Cost of Goods Sold 34770 34770 Inventory To record cost of goods sold) Unearned Service Revenue Internet Unearned Service Revenue - Maintenance Service Revenue Dec. 31, 2017