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Please answer in detail explanation. i will really appreciate it. Question: Explain how to recognize the revenue if you have the information below. The A

Please answer in detail explanation. i will really appreciate it.

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Explain how to recognize the revenue if you have the information below.


The A company sells copy machine at a sales price of JPY1,500,000per unit. The sales price includes delivery and installation. It also givesa maintenance service (6years) in which a technician checks to make sure that the machine is working properly with a price of JPY500,000(one-time prepayment).

The A  company  has  started  a  promotion  campaign  in  which  the  maintenance  service  (6years) will be offered for free to aclient that buys a copy machine of JPY 1,728,000.  

 The A company has made a contract to sell a copy machine with the maintenance service (6years) to B company by JPY 1,728,000

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