Prepare the 2017 journal entries related to the gift cards at March 1, March 31, April 30, and June 30. (Credit account titles a enter o for the amounts. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final an Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) III (To record sales of Cards redeemed) (To record cost of goods sold) (To record sales of Cards redeemed) To record cost of goods sold) (To record sales of cards not redeemed) Problem 18-8 (Part Level Submission) Presented below are two independent revenue arrangements for Colbert Company. Respond to the requirements related to each revenue arrangement. Your answer is correct. Colbert sells 3D printer systems. Recently, Colbert provided a special promotion of zero interest financing for 2 years on any new 3D printer system. Assume that Colbert sells Lyle Cartright a 3D system, receiving a $5,000 zero-interest-bearing note on January 1, 2017. The cost of the 3D printer system is $4,000. Colbert imputes a 6% Interest rate on this rero interest note transaction. Prepare the journal entry to record the sale on January 1, 2017, and compute the total amount of revenue to be recognized in 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Il 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, e.g. 1.25124 and the final answer to o decimal places e.g. 58,971.) Account Titles and Explanation Debit Credit Notes Receivable 5,000 Discount on Notes Receivable 550 Sales Revenue 4,450 (To record sales) Cost of Goods Sold 4.000 Tnventory 4,000 *Problem 18-8 (Part Level Submission) Presented below are two independent revenue arrangements for Colbert Company Respond to the requirements related to each revenue arrangement *(a) Your answer is correct. Colbert sels 3D printer wystems. Recently, Colbert provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Colbert sells Lyle Cartright a 3D system, receiving a $5,000 zero interest-bearing note on January 1, 2017. The cost of the 3D printer system is $4,000. Colbert imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2017, and compute the total amount of revenue to be recognized in 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 for the amounts. Round present value factor calculations to decimal places, e.g. 1.25124 and the final answer to o decimal places e.o. 58,971.) Account Titles and Explanation Debit Credit Notes Receivable Discount on Notes Receivable 350 Sales Revenue 1.450 (To records Cost of Goods Sol 2.000 Inventory (To record cost of goods sold) 1.000 Attempts: 1 of 5 used (b) enestarintah *(b) Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2017. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2017. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows. Redemption Total March 31 50% April 30 0 June 30 85 Prepare the 2017 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. Hound present value factor calculations to decimal places 1.25124 and the answer to decimal places.. 58,971.) Account Titles and Explanation Debit Credit To record sales (To record cost of goods sold) (To record sales of cardsredeemed account titles and enter o for the amounts. Hound present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to decimal places g. 38,971.) Date Account Titles and Explanation Debit L (To record sales) (To record cost of goods sold) (To record sales of cards redeemed (To record cost of goods sold) (To record sales of cardsredeamed) (To record cost of goods sold) (To record sales of cards not redeemed) Tune here to search D
