In fiscal 2024, Jubilee started offering 'free three-year servicing' for specific electronics. Customers can also purchase the servicing separately for any of their products. In fiscal 2024, Jubilee had sales of $20,000 of the electronics that included the 'free three-year servicing'. The servicing on its own is also sold separately for $2,500. In fiscal 2025, in which the books are still open, Jubilee had sales of $42,000 that included the 'free three-year servicing'. This servicing on its own would be sold for $6,000. Assume that the price paid for the electronics is the regular price for the electronics sold (i.e. the fair value of the electronics) The temporary accountant at the time left a note indicating that "since the servicing is free, it required no journal entry". Explain why the accounting for the free three-year servicing is not correct.