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.