A software company sells an enterprise resource planning $($ERP$)$ system. The contract includes the following deliverables:

Software license $($perpetual$)$ with a standalone selling price of $$250,000$

One year of implementation and customization services valued at $$100,000$

Three years of post$-$implementation technical support estimated at $$75,000$

The contract price is $$350,000,$ bundled with no separate pricing for elements. The company delivers the software and begins implementation in the current year.

Tasks:

Allocate the transaction price among the performance obligations.

Determine the revenue recognized for each element in the current year, using a proportional performance assumption for services.

Prepare the journal entries to record the initial sale and the year$-$end revenue recognition.

Explain how your treatment might change if the post$-$implementation support was optional and customer renewals wKindly do not provide chat gpt answers, posting this question $3$rd time here. If feel the question is from chatgpt and copied from any other source,

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