Sea Explorer Pte Ltd is in the business of selling luxury yachts. It also provides berthing facilities for $5,000 per year for boat owners. In the month of October 20X1, Sea Explorer sold a yacht for $47,500 inclusive of berthing services for a year to a customer. The normal selling price of the yacht is $45,000.

Explain when and how Sea Explorer should recognise the abovementioned transaction according to FRS 115 Revenue from Contracts with Customers. Include in your discission the five step model. include the relevant journal entries to recognise the revenue