Value Dealership Inc. markets and sells vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $30,000 and the standalone selling price for the annual maintenance contract is $612. During October, Value Dealership Inc. sold 30 vehicles for $30,250 per vehicle, each with a free annual maintenance contract. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). a. Determine how the transaction price should be allocated among the performance obligation(s) and record the journal entry in October for Value Dealership's sale of vehicles with the associated maintenance contracts to customers. Ignore the cost entry. Performance Obligations Transaction Price as stated Standalone Selling Price Allocated Transaction Price (rounded) Vehicle Annual maintenance contract $ $ 30,250 $ 30,250 50,500 $ 30,000 $ 612 30,612 $ 29,545 505 30,250 Account Name Dr. Cr. Cash Sales Revenue Vehicle 0 0 D Deferred Maintenance Revenue 0 0 To record the sale of vehicles with associated maintenance contracts. b. Assume the same information above except that the standalone selling price of the annual maintenance contract is not known because this was the first time Value Dealership offered the service. Value Dealership is uncertain as to what services, on average, a customer will take advantage of during the year of the contract. The Dealership researched competitor prices and determined that the average selling price for a maintenance service contract is $640. Determine how the transaction price should be allocated among the performance obligation(s) and record the journal entry in October for Value Dealership's sale of vehicles to its customers. Ignore the cost entry. Performance Obligations Transaction Price as stated Standalone Selling Price Allocated Transaction Price (rounded) Vehicle $ Annual maintenance contract $ 0 $ 0 0 S Account Name Dr. Cr. Cash Sales Revenue Vehicle 0 0 Deferred Maintenance Revenue 0 0 To record the sale of vehicles, D $ 0 05 0 0