Instructions In 2019, eGames spent $8,000,000 developing new software. Of this amount, $5,300,000 was spent before July 2019-when technological feasibility was established. The product was marketed to consumers beginning in September 2019. Games estimates total revenue of $20,000,000 to be earned during the software's 3-year life (calculated from the September 1 product release date). During 2019, revenue of $10,000,000 was recognized. Required: 1. Prepare the 2019 journal entries to record the development costs. 2. Compute the amount of amortization to be recognized in 2019 and prepare the appropriate journal entry, if any. 3. Next Level What is the justification for treating software development costs differently from R&D costs ? REVENUE 411 Sales Revenue ASSETS 111 Cash 121 Accounts Receivable 125 Notes Receivable 141 Inventory 181 Equipment 186 Software Development Costs 189 Accumulated Depreciation EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 526 Research and Development Expense 532 Bad Debt Expense LIABILITIES ons eral Journal Chart of Accounts Shaded cells have feedback. WE 520 Research and Development Expense urin LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable 532 Bad Debt Expense 533 Amortization Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings Shaded cells have feedback. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback PAGE 1 GENERAL JOURNAL Score: 42/51 DATE ACCOUNT TITLE POST. REF 1 DEBIT CREDIT 5,300,000.00 2 Cash 5,300,000.00 3 Sep, 1 Software Development Costs Cash 2,700,000.00 4 2,700,000.00 General Journal 1818 TRABA Shaded cells have feedback. es PAGE 1 che GENERAL JOURNAL Score: 16/25 DATE ACCOUNT TITLE POST. REF DEBIT 1 CREDIT Dec. 31 Amortization Expense 2 Software Development Costs Points: 3.2/5 Feedback Check My Work