Bonita Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.1. Bonita Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $506. The standalone selling price of the tablet is $234 (the cost to Bonita Company is $167). Bonita Company sells the Internet access service independently for an upfront payment of $324. On January 2, 2020, Bonita Company signed 90 contracts, receiving a total of $45,540 in cash.2. Bonita Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $612. Bonita Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $155. Bonita Company signed 190 contracts for Bonita Bundle B on July 1, 2020, receiving a total of $116,280 in cash. Prepare any journal entries to record the revenue arrangement for Bonita Bundle B on July 1, 2020, and December 31, 2020.(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "Noentry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,125.)DateAccount Titles and ExplanationDebitCredit(To record sales) (To record sales)(To record cost of goods sold)

The question is based on the concept of Financial Accounting.

Answered: Bonita Bundle B includes the tablet and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Bonita Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.

1.		Bonita Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $506. The standalone selling price of the tablet is $234 (the cost to Bonita Company is $167). Bonita Company sells the Internet access service independently for an upfront payment of $324. On January 2, 2020, Bonita Company signed 90 contracts, receiving a total of $45,540 in cash.
2.		Bonita Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $612. Bonita Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $155. Bonita Company signed 190 contracts for Bonita Bundle B on July 1, 2020, receiving a total of $116,280 in cash.

Prepare any journal entries to record the revenue arrangement for Bonita Bundle B on July 1, 2020, and December 31, 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 O for the amounts. Round answers to 0 decimal places, e.g. 5,125.)
Date
Account Titles and Explanation
Debit
Credit
(To record sales)

(To record sales)
(To record cost of goods sold)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions