Repeat the requirements for part (a), assuming that Bonita Company has no reliable data with which to estimate the standalone selling price for the Internet service. (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

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...
icon
Related questions
Question

Please make sure that the answers are visible. 

Repeat the requirements for part (a), assuming that Bonita Company has no reliable data with which to estimate the standalone
selling price for the Internet service. (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 O decimal places,
e.g. 5,125.)
Date
Account Titles and Explanation
Debit
Credit
(To record sales)
(To record cost of goods sold)
Transcribed Image Text:Repeat the requirements for part (a), assuming that Bonita Company has no reliable data with which to estimate the standalone selling price for the Internet service. (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 O decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)
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.
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.
1.
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.
Transcribed Image Text: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. 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. 1. 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.
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Data and information
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College