DeCoste Inc. is an innovative software company that sells financial management software and user support services bundled together. The fair value of the software is $$2,500,$ and the fair value of the user support service is $$500.$ The user support service is valid for a period of $12$ months from the date of the software purchase. In order to match a competitor's offering, DeCoste decided to sell the bundle at a discounted price of $$2,750.$ The software and user support service are considered separate performance obligations.

During August, $40$ units of bundled software and services were sold at the discount price. The cost of the software is $$1,200$ each.

Required:

Calculate the sales price that should be allocated to the software and the user support service using the relative fair value approach.

Provide the journal entry to record the sale of the units in August, assuming that all sales are on credit.