Sarjit Systems sold software to a customer for $90,000. As part of the contract, Sarjit promises to

Question:

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).


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

Question Posted: