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Pearls Agency sells an insurance policy offered by Capital Insurance Company for a commission of $190. In addition, Pearl will receive a further commission of $40 each year for as long as the policyholder does not cancel the policy. After selling the policy, Pearl does not have any remaining performance obligations. Based on its significant experience with these types of policies, Pearl estimates that policyholders on average renew the policy for 5.5 years. It has no evidence to suggest that previous policyholder behaviour will change.

Determine the transaction price of the arrangement for Pearl, assuming 100 policies are sold.

Transaction price

$enter the Transaction price in dollars

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List of Accounts

Prepare the journal entries, assuming that the 100 policies are sold in January 2020 and that Pearl receives commissions from Capital. (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.)

Date	Account Titles and Explanation	Debit	Credit
January, 2020	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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