Sage Technology is a full-service technology company that provides equipment, installation services, and training Products and services can be purchased separately or as a bundled package. Big Container Corporation purchased the bundled package from Sage for $120,000. Estimated standalone fair values are: computer equipment $75,000, installation $50,000, and training $25,000, on March 15. The journal entry to record the transaction on March 15 will include a O credit to Sales Revenue for $120,000. O credit to Unearned Service Revenue of $20,000. O debit to Unearned Service Revenue of $25,000. O credit to Service Revenue of $50,000.

Sage Technology is a full-service technology company that provides equipment, installation services, and training Products and services can be purchased separately or as a bundled package. Big Container Corporation purchased the bundled package from Sage for $120,000. Estimated standalone fair values are: computer equipment $75,000, installation $50,000, and training $25,000, on March 15. The journal entry to record the transaction on March 15 will include a O credit to Sales Revenue for $120,000. O credit to Unearned Service Revenue of $20,000. O debit to Unearned Service Revenue of $25,000. O credit to Service Revenue of $50,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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