13.

Assume that TSA enters into a five-year software arrangement on

January 1, 1999, whereby the customer is contractually committed

to make an initial payment of $100,000 on January 1, 1999 and $2,000

per month at the end of each month for five years.

Assume TSA charges an implicit interest rate of 12%. Provide

journal entries for the first two years of the contract. Explain in your

own words and provide citation from ASC 606.

14.

Assume on January 1, 2000, TSA sells its remaining receivable

from question 13 above

to a bank on a non-recourse basis for $65,000. Provide the journal

entry for the sale of this receivable, assuming the conditions for a

sale are met. Explain in your own words and provide citation from

ASC 606.