Question 3 (12 marks) Part A (7 marks) On August 17, 2020, Amy Limited received an order from Rosa Corp to purchase 5,000 units of Amy's famous binders. The selling price is $12 per unit, with terms 2/10, n/30, FOB shipping point. Customers may return the merchandise within 15 days. Based on Amy Limited's past experience, product returns average 12% of sales. Customers also normally pay within 10 days to benefit from the discount. Each binder costs Amy Limited $5 to produce. Amy Limited ships the binders on August 28, 2020. Required: a) Calculate the Transaction Price to be recognized by Amy Limited (3 marks) b) Prepare the journal entries required to record the revenue at the appropriate date (4 marks) Part B (5 marks) On January 1, 2020 Holt Security offers a written contract to provide one year of home security services to Ms. Linetti including a written report at the end of the year. Holt and Linetti agree to a price of $9,000 for the year. At the end of the year Holt completes the work, provides an incident folder to Linetti outlining all security concerns over the course of the year, and sends an invoice to Linetti for the $9,000 that was agreed upon. Please complete the five-step model for revenue recognition under the contract-based approach: 1) Identify the contract with the customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to perform obligations (as applicable) 5) Recognize revenue when performance obligations are satisfied