Complete Electronics Inc. sells a point-of-sale computer with a two-year service contract. Complete collects $3,000 cash for the selling price of the computer and $576 for the two-year service contract. How is revenue recognized?

A. Complete will record Sales Revenue of $1,788 per year for two years.

B. Complete will record Sales Revenue of $3,000 when the computer is delivered and Service Revenue of $24 per month for 24 months.

C. Complete will record Sales Revenue of $3,000 when the computer is delivered and will record revenue for the service contract as service calls are made.

D. Complete will record Sales Revenue of $3,576 when the computer is delivered to the customer.