Amazing Technology Company sells digital reading devices for $160 cash. Amazing estimates the cost of future software upgrades at $20. On average, customers keep the device about 4 years. Which of the following best describes when Amazing should recognize revenue from the sale of its digital reader?

Group of answer choices

Recognize revenue of $160 at the time of sale since cash has been collected.

Recognize revenue of $140 at the time of sale and $5 at the end of each of the next 4 years.

Recognize revenue of $160 evenly over the next 4 years.