Question Two: TrueTech Industries manufactures the Tri-Box System, a multiplayer gaming system allowing players to compete with each other over the Internet. The Tri-Box System includes the physical Tri-Box module as well as a one-year subscription to the Tri-Net multiuser platform of Internetbased games and other applications. TrueTech sells individual one-year subscriptions to the Tri-Net platform for $60, and the individual Tri-Box modules for $140. As a package deal, TrueTech sells the Tri-Box System (module plus subscription) for $180. With each package, TruTech offers a promotional coupon. The coupon gives the Tri-Box customer an opportunity to buy for $90 a headset that normally sells for $150 (a 40% discount). The coupon must be redeemed within one year of the Tri-Box purchase. TrueTech estimates that two thirds of the customers will take advantage of the coupon. per for mance obligation Stand alone price = = in coupon On January 1, 2017, TrueTech delivers 1,000 Tri-Box Systems to CompStores and collected $180,000 in cash. During 2017, the number of customers who used their coupons to purchase: the headsets is summarized below by quarter: 100 customers the first quarter, 120 in the second quarter, 180 in the third quarter, and finally 200 customers in the fourth quarter. Required: prepare all necessary journal entries to record the transactions described above for True Tech Industries on January 1 , and at the end of each quarter. Question Two: TrueTech Industries manufactures the Tri-Box System, a multiplayer gaming system allowing players to compete with each other over the Internet. The Tri-Box System includes the physical Tri-Box module as well as a one-year subscription to the Tri-Net multiuser platform of Internetbased games and other applications. TrueTech sells individual one-year subscriptions to the Tri-Net platform for $60, and the individual Tri-Box modules for $140. As a package deal, TrueTech sells the Tri-Box System (module plus subscription) for $180. With each package, TruTech offers a promotional coupon. The coupon gives the Tri-Box customer an opportunity to buy for $90 a headset that normally sells for $150 (a 40% discount). The coupon must be redeemed within one year of the Tri-Box purchase. TrueTech estimates that two thirds of the customers will take advantage of the coupon. per for mance obligation Stand alone price = = in coupon On January 1, 2017, TrueTech delivers 1,000 Tri-Box Systems to CompStores and collected $180,000 in cash. During 2017, the number of customers who used their coupons to purchase: the headsets is summarized below by quarter: 100 customers the first quarter, 120 in the second quarter, 180 in the third quarter, and finally 200 customers in the fourth quarter. Required: prepare all necessary journal entries to record the transactions described above for True Tech Industries on January 1 , and at the end of each quarter
