On January 1, 2019, Loud Compary enters into a 2 -year contract with a customer for an unimited talk and 5 GB data wireless plan for 570.00 per month. The cortract includes a smartphone for which the customer pays $299.00. Loud also selis the smartphone and monthly service plan separately, charging $669.00 for the smartphone and $70.00 for the monthly service for the unimited talk and 5.GB data wireless plan. On July 1, 2019, the customer realizes that she needs less data in her wireless plan and downgrades to the unlimited talk and 2 GB data plan for the remaining term of the contract (18 months). The unlimited takk and 2 GB data plan is priced at $49.00 per month. The $49.00 per month is Louds current stand-alone price for this plan that is avalable to all customers. Required: 1. How should Loud account for this contract modification? 2. Provide Loud's new monthly revenue recognition joumal entry. 1. How should Loud account for this contract modification? Addinianal instruction The contract modification add goods or services to the arrangement theretore, this medfication De treated as a separate contract. Howover, to dotermine tho appropriate accounting for the modificafion, the entity has to assess whether the remaining goods and services (18 months of service) are the goods and services atready provided to the customer (handset and 6 months of services) On duly 1, the contract receivable has a remaining balance of As a result the ontity has X to allocate to the remaining 18 months of service; or x per month How does grading work