Question
Apex Technology Solutions Inc. provides Accounting Software license to its clients. Case A: Assume that on October 1, 2020, Apex sold an accounting software license
Apex Technology Solutions Inc. provides Accounting Software license to its clients.
Case A: Assume that on October 1, 2020, Apex sold an accounting software license for $200,000 and also agreed to provide software upgrades at the start of each of the next 4 years and indicated that software upgrades are not distinct from the license.
Case B: Assume that on October 1, 2020, Apex sold an accounting software license for $200,000 without any upgrades.
Required
1. Make the journal entry or entries necessary for Apex at Case A for this transaction for its revenue recognition.
2. Make the journal entry or entries necessary for Apex at Case B for this transaction for its revenue recognition.
3. Please explain the differences between the two cases in terms of performance obligations.
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
9781292016924
