13: Assume that TSA enters into a five-year software arrangement onJanuary 1, 1999, whereby the customer is contractually committedto make an initial payment of $100,000 on January 1, 1999 and $2,000per month at the end of each month for five years.Assume TSA charges an implicit interest rate of 12%.Providejournal entries for the first two years of the contract.Explain and provide citation from ASC 606.

Assume on January 1, 2000, TSA sells its remaining receivablefrom question 13 aboveto a bank on a non-recourse basis for $65,000. Provide the journalentry for the sale of this receivable, assuming the conditions for asale are met.Explain and provide citation fromASC 606.