Step $5$: Recognise Revenue as performance obligations satisfied.

When Lingard Co delivers the set top box it revenue as performanceshould recognise revenue of $$233\mathrm{.}00.$

obligations satisfiedLingard Co should recognise revenue in respect of the TV access as access is provided to Monica. Therefore in the year ended $31$March $20$X$5,$ revenue of $$181\mathrm{.}00($$$727$ x $3/12)$ is recognised.

A summary of the journals required in the period $1$ January$-31$ March $20$X$5$ is therefore: DEBIT Cash$($$$80$ x $3)$$$240$

DEBIT Receivable$$174$

CREDIT Revenue $($$$233+$$$414+$$$181)$