Question
On November 1, 2019, Gerakos Corporation sold software and asix-month technical support contract to a customer for $80,000.Gerakos sells the same software without technical support
On November 1, 2019, Gerakos Corporation sold software and asix-month technical support contract to a customer for $80,000.Gerakos sells the same software without technical support for$60,000. It sells technical support for $30,000. Gerakos allocatesthe transaction price based on relative stand-alone values.
Required:
What amount of revenue does Gerakos recognize in 2019 and in2020?
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Management Accounting For Business
Authors: Colin Drury, Mike Tayles
8th Edition
1473778808, 978-1473778801
