Tablet Tailors sells tablet PCs combined with Internet service (Tablet Bundle A) that permits the tablet to connect to the Internet anywhere (set up a Wi-Fi hot spot). The price for the tablet and a 4-year Internet connection service contract is $500. The standalone selling price of the tablet is $250 (cost to Tablet Tailors $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $100, plus $72 payments at the beginning of years 2–4 of the contract. With an imputed interest rate of 8%, the standalone value of the service is $286. On January 2, 2014, Tablet Tailors signed 100 contracts, receiving a total of $31,445 in cash (full payment of $500 each in cash, less the present value of the note for the future service plan payments), delivered tablets, and started service for 100 tablet packages.

Tablet Tailors offers a second package (Tablet Bundle B) which includes a service plan for the tablet PC covering the 4-year contract period. That product bundle sells for $600. Tablet Tailors provides the tablet service as a separate product with a standalone selling price of $160.

Prepare any journal entries to record the sale of 200 of these packages on January 2, 2014.