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Question 14 11 pts Valve Corp. sells its gaming console for $500. In addition, Valve is running a promotion in the month of September under
Question 14 11 pts Valve Corp. sells its gaming console for $500. In addition, Valve is running a promotion in the month of September under which customers who buy a console during the month receive an activation code that allows a free download of the company's bestselling game, Half-Life. Without the code, Half- Life normally sells for $75. The activation code expires four months from the date of the purchase of the console, and the company expects that 60% of customers will use the activation code. Valve sells 200 consoles during the month of September of 2019. Of all codes that were issued, 45% were redeemed by the end of 2019, and the remaining codes expired unused in 2020. Note: When allocating the transaction price, round any percentage to the nearest two decimal places; i.e., 0.8474~0.85. A. In the summary entry in September of 2019 to record the sale of the gaming consoles, how much should be credited to Deferred Revenue? B. What amount of Deferred Revenue should be reported on the 12/31/19 balance sheet? C. What amount of Sales Revenue should be reported on the income statement for the year ended 12/31/19
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