Problem 18-1 (Part Level Submission)

Coronado 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.

		Coronado 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 $483. The standalone selling price of the tablet is $263 (the cost to Coronado Company is $166). Coronado Company sells the Internet access service independently for an upfront payment of $274. On January 2, 2017, Coronado Company signed 90 contracts, receiving a total of $43,470 in cash.
		Coronado 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 $589. Coronado Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $139. Coronado Company signed 180 contracts for Coronado Bundle B on July 1, 2017, receiving a total of $106,020 in cash. a)Prepare any journal entries to record the revenue arrangement for Coronado Bundle A on January 2, 2017, and December 31, 2017. (I have this one figured out, just need help with part c) c)Repeat the requirements for part (a), assuming that Coronado Company has no reliable data with which to estimate the standalone selling price for the Internet service.