Third Eye Incorporated (TEI) manufacturers and sells home security systems. During the year. TEl signed a contract with a major retailer. BB Ltd to provide new security systems for their 10 retail locations across the country. Under the contract. Tel will deliver the following number of security systems: Ontario - 5 security systems Western Canada - 3 security systems Atlantic Canada - 2 security systems The systems will be delivered to Ontario in August, Western Canada in September and Atlantic Canada in November. In addition. TEI will provide a 3-year contract for the systems, providing 24/7 professional security monitoring. The monitoring begins in August , once the Ontario cameras are delivered. This service retails for $400 per month, The total price of the contract is $140.000, including the monitoring, 50% of the contract will be paid in August. The remainder will be paid in November. Each system is worth $14.500 on its own. Required: Determine how much revenue to recognize using the five-step model for revenue recognition (Note: You do not need to complete the journal entries)

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