Sarjit Systems sold software to a customer for $$98,000.$ As part of the contract, Sarjit promises to provide "free" technical support over

the next $6$ months. Sarjit sells the same software without technical support for $$85,000$ and a stand$-$alone $6-$month technical support

contract for $$15,000,$ so these products would sell for $$100,000$ if sold separately. Sarjit delivered the software and received cash of

$$98,000$ on May $15.$ Allocate the transaction price to software and technical support, and determine the financial statement effects of

the transaction on May $15.$

Complete this question by entering your answers in the tabs below.

Allocation

Sarjit Systems sold software to a customer for $$98,000.$ As part of the contract, Sarjit promises to provide "free" technical support over

the next $6$ months. Sarjit sells the same software without technical support for $$85,000$ and a stand$-$alone $6-$month technical support

contract for $$15,000,$ so these products would sell for $$100,000$ if sold separately. Sarjit delivered the software and received cash of

$$98,000$ on May $15.$ Allocate the transaction price to software and technical support, and determine the financial statement effects of

the transaction on May $15.$

Complete this question by entering your answers in the tabs below.

Determine the financial statement effects of the transaction on May $15.$

Allocation