Your answer is partially correct. Sunland sells 3-D printer systems. Recently, Sunland provided a special promotion of zero-interest financing for two years on any new 3-D printer system. Assume that Sunland sells Lyle Cartright a 3-D system, receiving a $5,600 zero-interest-bearing note on January 1, 2020. The cost of the 3-D printer system is $4,480. Sunland 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 is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Date January 1, 2020 Notes Receivable Sales Revenue (To record sales) January 1, 2020 Cost of Goods Sold $4480 Inventory $4480 (To record cost of goods sold) Calculate the total amount of revenue to be recognized in 2020. Total revenue for Sunland $ $4184 Your answer is partially correct. Sunland sells 20 non-refundable $234 gift cards for 3-D printer plastic on March 1, 2020. The plastic has a stand-alone selling price of $234 (cost $187). The gift card expiration date is June 30, 2020. Sunland 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 O for the amounts. Record journal entries in the order presented in the problem.) late Account Titles and Explanation Debit Credit 1, 2020 Cash $4212 Contract Asset/Liability $4212 31, 2020 Contract Asset/Liability $2106 Sales Revenue $2106 (To record sales revenue) 31, 2020 Cost of Goods Sold $1870 Inventory $1870 (To record cost of goods sold) 31, 2020 Contract Asset/Liability $2106 Sales Revenue $2106 (To record sales revenue) 31, 2020 Cost of Goods Sold $1870 Inventory $1870 (To record cost of goods sold) ., 2020 Contract Asset/Liability $842 Sales Revenue $842 (To record sales revenue) 0, 2020 Cost of Goods Sold $748 Inventory $748 (To record cost of goods sold) ), 2020 Contract Asset/Liability $210.6 Sales Revenue $210.6 (To record sales) ), 2020 Cost of Goods Sold $187 Inventory $187 (To record cost of goods sold) Sunland 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 $4,480) Custom stand (cost $225) Special 3-D plastic (cost $155) Total for bundle Stand-Alone Selling Price $5,600 500 195 $6,295 Price When Bundled $5,040 500 195 $5,735 Bundling Discount $560 -0- -0- $560 Due to the timing of the delivery-the plastic is delivered six months after the printer is delivered to the customer-Sunland chooses to account for two performance obligations: (1) the printer and stand, and (2) the plastic. Prepare the journal entries for Sunland on March 1, 2020, when Sunland receives $57,350 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Crec March 1, 2020 V Cash (To record sales) March 1, 2020 Cost of Goods Sold Inventory (To record cost of goods sold) September 1, 2020 Sales Revenue (To record sales) September 1, 2020 Cost of Goods Sold Inventory (To record cost of goods sold)