Problem 18-8 Presented below are two independent revenue arrangements for Sweet Company Respond to the requirements related to each revenue arrangement Sweet sells 3D printer systems. Recently, Sweet provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Sweet sells Lyle Cartright a 3D system, receiving a $5,700 zero-interest-bearing note on January 1, 2017. The cost of the 3D printer system is $4,560. Sweet 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 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) Sweet sells 200 nonrefundable $90 gift cardss for 3D printer paper on March 1, 2017. The paper has a standalone selling price of $90 (cost $72). The gift cards expiration date is June 30, 2017. Sweet estimates that customers will not redeem 10 % of these gift cards. The pattern of redemption is as follows. Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) Sweet sells 20 nonrefundable $90 gift cards for 3D printer paper on March 1, 2017. The paper has a standalone selling price of $90 (cost $72). The gift cards expiration date is June 30, 2017. Sweet 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 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 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 pare 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.) ted to 31, 30, dent the Account Titles and Explanation Date Debit Credit (To record sales) (To record cost of goods sold) (To record sales of cards redeemed) (To record cost of goods sold) Policy L 2000-2019 Jobn Wilev & Sons Inc All Rights Reserved A Division of John Wilev & Sons Inc. Version 4 24 Problem 18-8 Presented below are two independent revenue arrangements for Sweet Company Respond to the requirements related to each revenue arrangement Sweet sells 3D printer systems. Recently, Sweet provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Sweet sells Lyle Cartright a 3D system, receiving a $5,700 zero-interest-bearing note on January 1, 2017. The cost of the 3D printer system is $4,560. Sweet 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 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) Sweet sells 200 nonrefundable $90 gift cardss for 3D printer paper on March 1, 2017. The paper has a standalone selling price of $90 (cost $72). The gift cards expiration date is June 30, 2017. Sweet estimates that customers will not redeem 10 % of these gift cards. The pattern of redemption is as follows. Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) Sweet sells 20 nonrefundable $90 gift cards for 3D printer paper on March 1, 2017. The paper has a standalone selling price of $90 (cost $72). The gift cards expiration date is June 30, 2017. Sweet 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 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 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 pare 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.) ted to 31, 30, dent the Account Titles and Explanation Date Debit Credit (To record sales) (To record cost of goods sold) (To record sales of cards redeemed) (To record cost of goods sold) Policy L 2000-2019 Jobn Wilev & Sons Inc All Rights Reserved A Division of John Wilev & Sons Inc. Version 4 24