Question
Sarjit Systems sold software to a customer for $181,000. As part of the contract, Sarjit promises to provide free technical support over the next six
Sarjit Systems sold software to a customer for $181,000. As part of the contract, Sarjit promises to provide "free" technical support over the next six months. Sarjit sells the same software without technical support for $157,500 and a stand-alone six-month technical support contract for $52,500, so these products would sell for $210,000 if sold separately.
Prepare Sarjit's journal entry to record the sale of the software. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record the sale of software for cash.
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