Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company also provides consulting services and support for 2 years after the initial sale to ensure smooth operation of the software. The total transaction price is $420,000. Based on standalone values, the company estimates the future consulting services and support have a value of $120,000 and the software license has a value of $300,000. Assuming the performance obligations are distinct and separate from one another, the journal entry to record the initial sales transaction includes: a credit to Unearned Service Revenue of $120,000. a credit to Service Revenue of $120,000. a credit to Sales Revenue of $420,000. a credit to Sales Revenue for $300,000 and a credit to Unearned Service Revenue of $120,000. Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company also provides consulting services and support for 2 years after the initial sale to ensure smooth operation of the software. The total transaction price is $420,000. Based on standalone values, the company estimates the future consulting services and support have a value of $120,000 and the software license has a value of $300,000. Assuming the performance obligations are distinct and separate from one another, the journal entry to record the initial sales transaction includes: a credit to Unearned Service Revenue of $120,000. a credit to Service Revenue of $120,000. a credit to Sales Revenue of $420,000. a credit to Sales Revenue for $300,000 and a credit to Unearned Service Revenue of $120,000