Question: Sarjit Systems sold software to a customer for 90 000 As

Sarjit Systems sold software to a customer for $90,000. As part of the contract, Sarjit promises to provide “free” technical support over the following six months. Sarjit sells the same software without technical support for $80,000 and a stand-alone six-month technical support contract for $20,000, so these products would sell for $100,000 if sold separately. Prepare Sarjit’s journal entry to record the sale of the software (ignore any potential entry to revenue or cost of sales).




Sale on SolutionInn
Sales7
Views1813
Comments
  • CreatedDecember 23, 2013
  • Files Included
Post your question
5000