Reference no: EM133168412

Question - On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 5,600 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $95,200, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $56,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Prepare the journal entry that Meta would record on May 1, 2021.