Revenue Recognition

Spectra Inc. sells a variety of satellite TV packages. The popular $600 Basic Package includes a

hardware component (consisting of a satellite dish and receiver) along with a 12-month

subscription to TV channels. Spectra Inc. sells the hardware components without a subscription

for $180 and sells the 12-month subscription to the same TV channels without hardware for $540

per year. Let's account for the sale of one Basic Package for $600 on January 1, 2020.

Required:

Prepare the journal entries for 2020.