Problem 18-08 Presented below are two independent revenue arrangements for Kingbird Company. Respond to the requirements related to each revenue arrangement. Click here to view factor table.

Kingbird sells 3D printer systems. Recently, Kingbird provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Kingbird sells Lyle Cartright a 3D system, receiving a $5,600 zero-interest-bearing note on January 1, 2020. The cost of the 3D printer system is $4,480. Kingbird imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2020, and compute the total amount of revenue to be recognized in 2020. (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 present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Account Titles and Explanation	Debit	Credit
(To record sales)
(To record cost of goods sold)

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Kingbird sells 20 nonrefundable $120 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $120 (cost $96). The gift cards expiration date is June 30, 2020. Kingbird 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		80
June 30		85

Prepare the 2020 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 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 1, 2020Mar. 31, 2020Apr. 30, 2020Jun. 30, 2020
Mar. 1, 2020Mar. 31, 2020Apr. 30, 2020Jun. 30, 2020
	(To record sales of cards redeemed)
	(To record cost of goods sold)
Mar. 1, 2020Mar. 31, 2020Apr. 30, 2020Jun. 30, 2020
	(To record sales of cards redeemed)
	(To record cost of goods sold)
Mar. 1, 2020Mar. 31, 2020Apr. 30, 2020Jun. 30, 2020
	(To record sales of cards redeemed)
	(To record cost of goods sold)
	(To record sales of cards not redeemed)

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