$3$

Posa Hotels, Inc., has a sixth$-$night$-$free policy. Every sixth night a guest stays at the hotel is free. Because not all guests stay enough

nights to earn a free stay, on average the number of free nights redeemed is $70\%$ of the maximum possible number of free nights

available one obtains by dividing the total number of paid nights the hotel has had by $5.$ Rooms at Posa Hotels cost $$300$ per night.

In $20$X$1,$ Posa had a total of $100,000$ paid room$-$nights and collected a total of $$30$ million from customers. Also in $201,$ customers

redeemed a total of $10,000$ free room$-$nights. Some of the room$-$nights awarded were based on customers' paid nights from previous

years and some were based on paid nights from the current year.

Required:

Prepare journal entries to record revenue for $20$X$1$ for Posa. $($If no entry is required for a particular transaction, select $"$No journal

entry required" in the first account field. Enter your answers in dollars and not in millions of dollars. Do not round intermediate

calculations. Round your answers to the nearest whole dollar amount.$)$

Answer is complete but not entirely correct.

Journal Entry $1$: Prepare the entry to record the revenue recognized for the nights paid by customers.

Journal Entry $2$: Prepare the entry to record the revenue recognized for the free nights redeemed by customers.