Provide the journal entries for Apple to sell a single iPhone for $800 under both subscription and upfront recognition methods. Include journal entries to record cost of goods sold, including your estimate of this amount.

Answer this question(picture is better)Based on the $800 sales price, compare how the two methods would impact Apples income statements, balance sheets, and cash flows statements for the current and future years.

Subscription Method Under Subscription method, we would need to assume that the revenue from the iPhone is spread accross its life. We would need to split the $800 subscription across multiple months At the time of the sale we would record the following Journal Unearned Revenue Sale of iphone Debit Credit To Cash/Customer Receivable 800 Unearned Revenue 800 we would simaltaneously record an entry for the Unearned Revenue. Assuming the cost of an iphone is 50% of the sales price