Exercise 15.9 MULTIPLE-ELEMENT ARRANGEMENT

Alissa Ltd provides a bundled service offering to Customer B. It charges Customer B $35 000 for initial connection to its network and two ongoing services access to the network for 1 year and on-call troubleshooting advice for that year.

Customer B pays the $35 000 upfront, on 1 July 2017. Alissa Ltd determines that, if it were to charge a separate fee for each service if sold separately, the fee would be:

Connection fee	$5 000
Access fee	12 000
Troubleshooting	23 000

The end of Alissa Ltds reporting period is 30 June.

Required

Prepare the journal entries to record this transaction in accordance with AASB 118/IAS 18 for the year ended 30 June 2018, assuming Alissa Ltd applies the relative fair value approach. Show all workings.