Wildhorse sells 3-D printer systems. Recently, Wildhorse provided a special promotion of zero-interest financing for two years on any new 3-D printer system. Assume that Wildhorse sells Lyle Cartright a 3-D system, receiving a $5,900 zero-interest- bearing note on January 1, 2020. The cost of the 3-D printer system is $4,720. Wildhorse imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entries to record the sale on January 1, 2020. (Credit account titles are automatically indented when the amount entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Date January 1, 2020 (To record sales) January 1, 2020 (To record cost of goods sold) Calculate the total amount of revenue to be recognized in 2020. Total revenue for Wildhorse $ eTextbook and Media List of Accounts Wildhorse sells 20 non-refundable $81 gift cards for 3-D printer plastic on March 1, 2020. The plastic has a stand-alone selling price of $81 (cost $65). The gift card expiration date is June 30, 2020. Wildhorse estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows. March 31 April 30 June 30 Cumulative Redemption Rate to Date 50% 80% 85% Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30. (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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cre (To record sales revenue) (To record cost of goods sold) (To record sales revenue) (To record cost of goods sold) (To record sales) (To record cost of goods sold) Wildhorse sells 3-D printers along with a number of retail items. The package price and stand-alone selling prices of each item are as follows. The printer and stand are often sold as a bundle with the bundling discount noted below. Item 3-D printer (cost $4,720) Custom stand (cost $235) Special 3-D plastic (cost $160) Total for bundle Stand-Alone Selling Price $5,900 530 Price When Bundled $5,310 530 205 $6,045 Bundling Discount $590 -0- -0- $590 205 $6,635 Due to the timing of the delivery-the plastic is delivered six months after the printer is delivered to the customer-Wildhorse chooses to account for two performance obligations: (1) the printer and stand, and (2) the plastic. Prepare the journal entries for Wildhorse on March 1, 2020, when Wildhorse receives $60,450 for the sale of 10 printer bundles, and September 1, 2020, when the plastic is delivered to customers. (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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit (To record sales) (To record cost of goods sold) (To record sales) (To record cost of goods sold)
