Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at...

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Posa Hotels, Inc., has a sixth night free policy. Every sixthnight a guest stays at the hotel is free. Because not all guestsstay enough nights to earn a free stay, on average the number offree nights redeemed is 70% of the maximum possible number of freenights available one obtains by dividing the total number of paidnights the hotel has had by 5. Rooms at Posa Hotels cost $300 pernight. In 2019, Posa had a total of 100,000 paid room-nights andcollected a total of $30 million from customers. Also in 2019,customers redeemed a total of 10,000 free room-nights. Some of theroom-nights awarded were based on customers paid nights fromprevious years and some were based on paid nights from the currentyear. Required: Prepare journal entries to record revenue for 2019for Posa. (If no entry is required for a particular transaction,select "No journal entry required" in the first account field. Donot round intermediate calculations. Round your answers to thenearest whole dollar amount.) 1)Prepare the entry to record therevenue recognized for the nights paid by customers. 2)Prepare theentry to record the revenue recognized for the free nights redeemedby customers.

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For 2019 Total collections from 100000 paid roomnights 30000000 Maximum possible number of free nights available to customers 100000 520000 Average the See Answer

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Posa Hotels, Inc., has a sixth night free policy. Every sixthnight a guest stays at the hotel is free. Because not all guestsstay enough nights to earn a free stay, on average the number offree nights redeemed is 70% of the maximum possible number of freenights available one obtains by dividing the total number of paidnights the hotel has had by 5. Rooms at Posa Hotels cost $300 pernight. In 2019, Posa had a total of 100,000 paid room-nights andcollected a total of $30 million from customers. Also in 2019,customers redeemed a total of 10,000 free room-nights. Some of theroom-nights awarded were based on customers paid nights fromprevious years and some were based on paid nights from the currentyear. Required: Prepare journal entries to record revenue for 2019for Posa. (If no entry is required for a particular transaction,select "No journal entry required" in the first account field. Donot round intermediate calculations. Round your answers to thenearest whole dollar amount.) 1)Prepare the entry to record therevenue recognized for the nights paid by customers. 2)Prepare theentry to record the revenue recognized for the free nights redeemedby customers.