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Sheridan Co. enters into a contact to sell Product A and Product B on January 2, 2020, for an upfront cash payment of $180,000. Product A will be delivered in two years (January 2, 2022) and Product B will be delivered in five years (January 2, 2025). Sheridan Co. allocates the $180,000 to Products A and B on a relative stand-alone selling price basis as follows. Product A Product B Stand-Alone Selling Prices $47,500 142,500 $190,000 Percent Allocated 25% 75% Allocated Amounts $45,000 135,000 $180,000 Sheridan Co. uses an interest rate of 6%, which is its incremental borrowing rate. Your answer is partially correct. Try again. Prepare the journal entries necessary on January 2, 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit January 2, 2020 Cash 180000 Unearned Revenue 180000 December 31, 2020 Interest Expense 10800 Interest Payable 10800 Prepare the journal entry needed on December 31, 2021. (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.) Date Account Titles and Explanation Debit Credit December 31, 2021 interest Expense 11448 Interest Payable 11448 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prepare the journal entry needed on January 2, 2022. (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.) Debit Credit Date Account Titles and Explanation January 2, 2022 Tunearned Revenue 67248 X Sales Revenue 67248 SHOW LIST OF ACCOUNTS Using Excel or a financial calculator, calculate the amount of revenue to be recognized for Product B. (Round answer to 2 decimal places, e.g. 5,275.25.) Amount of revenue to be recognized 170189.47 Prepare the journal entry needed on January 2, 2025. (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. 5,275.) Date Account Titles and Explanation Debit Credit January 2, 2025 Tunearned Revenue 170189.47 Sales Revenue 170189.47

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