On November 1, 20X1, Gerakos Corporation sold software and a six-month technical support contract to a customer
Question:
On November 1, 20X1, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It does not sell technical support separately. Gerakos uses the residual method to allocate the transaction price.
Required:
What amount of revenue does Gerakos recognize in 20X1 and in 20X2?
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Gerakos allocates different portions of the 80000 transaction price to the software and the technica...View the full answer
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Related Book For 
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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