For the following situation determine when the entity should recognize revenue. Explain your thinking for when you decide to recognize the revenue. Apply the five revenue recognition steps in IFRS 15 in your discussion. Provide required journal entries for 2021 and 2022.

In September 2021 Pedro Equipment Inc. (Pedro) received an order for 20 advanced workstations from a British Columbia call center company. After negotiations, Pedro offered a price of $160,000 for the workstation (Pedro normally charges about $9,000 for equivalent workstations). A contract was signed by the parties and Pedro did a credit check on the customer and confirmed the customer had an excellent credit rating. Terms of payment are $30,000 when the contract was signed plus $13,000 per month beginning the month the workstations are delivered until the balance is paid. As part of the agreement, Pedro will provide its six-month standard warranty against manufacturers defects that all customers receive. Pedro estimates that the standard warranty service will incur costs of about $5,000. The Pedro is also providing an extended warranty with rapid same-day service for two-years following the expiration of the standard warranty. Normally the Pedro would sell the extended warranty for about $500 per workstation, but it is included in the contract price. Pedro will also give the customer a 20% discount on any purchases of workstations in 2022. Pedro knows that the customer will be upgrading another one of its call centers in 2022 and estimates that theres an 80% chance it will purchase another 10 workstations.