*Problem 18-2 Riverbed 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. 1. Riverbed 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 $494. The standalone selling price of the tablet is $225 (the cost to Riverbed Company is $176). Riverbed Company sells the Internet access service independently for an upfront payment of $321. On January 2, 2017, Riverbed Company signed 100 contracts, receiving a total of $49,400 in cash. Riverbed 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 $598. Riverbed Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $147. Riverbed Company signed 200 contracts for Riverbed Bundle B on July 1, 2017, receiving a total of $119,600 in cash. In response to competitive pressure for Internet access for Riverbed Bundle A, after 2 years of the 3-year contract, Riverbed Company offers a modified contract and extension incentive. The extended contract services are similar to those provided in the first 2 years of the contract. Signing the extension and paying $94 (which equals the standalone selling of the revised Internet service package) extends access for 2 more years of Internet connection. 30 Riverbed Bundle A customers sign up for this offer. the ad 1 le e me 1 vides ed2 Prepare the journal entry when the contract is signed on January 2, 2019, for the 30 extended contracts. Assume the modification does not result in a separate performance obligation. (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 o for the amounts.) Account Titles and Explanation Debit Credit petil modi cont exten a sep Indel Prepare the journal entry on December 31, 2019, for the 30 extended contracts (the first year of the revised 3-year contract). (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 o for the amounts. Round answers to o decimal places, e.g. 5,125.) nd Exp Account Titles and Explanation Debit Credit