Scenario 1 - multiple obligations A firm sells a TV with a three-year warranty for $6,000. The firm also sells the TV without a warranty for $5,600. Customers can also get the warranty from a third party at $600. The cost of the TV to the firm is $5,450 while the cost to provide warranty is $300. 2 points 2 points 3.1 Assume the company uses the relative fair value approach for multiple-element revenue arrangement. How much revenue is recognized when the TV is del 3.2 Assume the company is allowed to use the residual value approach. Using the residual value approach, What is the Third Party Selling price the company must establish for the warranty to recognize a net income of $100 when the TV is delivered? Scenario 2 - variable considerations A firm sells 200 units at $80 each (cost of goods is $45 each) on credit on 1/1/20 and expects a 10% return. The arrangement is considered as a revenue arrangement with variable considerations. The customer paid at the end of the year (12/31/20) and returned 18 units. 4 points 3.3 What is the journal entry at the point of sales