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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
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.
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