Sanchez Co. enters into a contract to sell Product A and Product B on January 2, 2015, for an upfront cash payment of R$150,000. Product A will be delivered in 2 years (January 2, 2017) and Product B will be delivered in 5 years (January 2, 2020). Sanchez Co. allocates the R$150,000 to Products A and B on a relative standalone selling price basis as follows. Standalone Selling Prices Percent Allocated Allocated Amounts Product A R$40,000 25% R$37,500 Product B 120,000 75% 112,500 R$160,000 R$150,000 Sanchez Co. uses an interest rate of 6%, which is its incremental borrowing rate.

Prepare the journal entries necessary on January 2, 2015, and December 31, 2015. (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 answers to 0 decimal places, e.g. 5,275.)

Prepare the journal entry necessary on December 31, 2016. (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 answers to 0 decimal places, e.g. 5,275.)

Prepare the journal entry necessary on January 2, 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 answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit January 2, 2017