Exhibit $2$: Bundled Contract Arrangement

Sales Contract

This sales contract $($the "contract"$)$ is entered into on $4/1/$Year $1($the "effective date"$),$ by and

between HRH Granite $($the "seller"$)$ and Kitchen Warehouse $($the "buyer"$)$ for a contract term of

five years. The total contract price of $$20,000$ is to be paid in accordance with the terms of this

contract.

The seller agrees to make available for sale and the buyer shall purchase the following:

$-$ One$-$time accessibility fee

$-$ Display unit

$-$ Annual maintenance of display unit

$*$collectively known as $("$the products"$).$

SP$24$ ACCT$301$A Case Study Codification Research: Revenue Recognition Updated: March, $2024$

$4$

The fee structure agreed to by the seller and buyer of the products includes the following:

$-$ One$-$time accessibility fee $ $2,500$

$-$ Display unit $$10,000$

$-$ Annual maintenance of display unit $$1,500/$year

HRH Granite: HRH Granite $/$ LBC

Kitchen Warehouse: Kitchen Warehouse $/$ JCO

Supplemental Information: Sales Contract dated April $1,$ Year $1$

$1)$ Kitchen Warehouse paid $$20,000$ to the company on April $1,$ Year $1.$

$2)$ The company$$s fiscal year$-$end is on June $30.$ The company does not make any deferred

account adjustments until the fiscal year$-$end. All deferral and accrual adjustments posted at

the end of the fiscal year via manual adjusting entries.

Supplemental Information: E$-$mail dated Wednesday, June $30,$ Year $1,10$:$21$ a$.$m$.$

$1)$ For the HRH Granite display unit model and maintenance that was sold to Kitchen

Warehouse, the standard pricing is as follows:

HRH Granite sells the display unit and annual maintenance services separately for the following

amounts:

$-$ Display unit $$15,000$

$-$ Annual maintenance of display unit $$2,000/$year

$2)$ The accessibility fee is not distinct nor separately identifiable from the other products

Journal Entry for $6/30$ Year $1$