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
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).
Step by Step Solution
3.42 Rating (171 Votes )
There are 3 Steps involved in it
Based on relative standalone selling prices the software comprises 80 of the total fair values 8000... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
270-B-A-F-A (1137).docx
120 KBs Word File
