Software Innovations, Inc., sells their software for $140,000. They also provide user training services for...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Software Innovations, Inc., sells their software for $140,000. They also provide user training services for $20,000 and a three-year customer support for $40,000. In January of 2020, one customer purchased the software together with a user training scheduled in February 2020 and three-year customer support (starting February 2020) for a bundled sales price of $160,000. How should the company report the sale in January 2020?
Software license sales revenue $140,000, unearned training revenue and customer support revenue $20,000.
Software license sales revenue $112,000, training revenue and customer support revenue $48,000.
Software license sales revenue $112,000, unearned training revenue $16,000, unearned customer support revenue $32,000.
Software license sales and training revenue $128,000, customer support revenue $32,000.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
