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UP4-9 (Revenue recognition on software sales) Suppose that Solution Software Company produces inventory-tracking software that it sels to retail companies. The software keps track of
UP4-9 (Revenue recognition on software sales) Suppose that Solution Software Company produces inventory-tracking software that it sels to retail companies. The software keps track of what inventory is on hand and where it is located. It automatically adjusts the information when items are sold and alerts the company when new inventory needs to be ordered. The software package sells for $100,000 and the company agrees to customize it to the buyer's operations, which can take several months. Required If the fiscal year end is September 30 and the company sells 10 software units in August, how should it recognize these sales in the financial statements at year end? Use the revenue recognition criteria to support your
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