18-3 Windsor Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Windsor will receive a payment of $12,600,000 if the drug receives regulatory approval.
(B) Assuming that regulatory approval was granted on December 20, 2017, and that Windsor received the payment from Pang on January 15, 2018, prepare the journal entries for Windsor. The license meets the criteria for point-in-time revenue recognition. (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 0 for the amounts.)