XYB company sells software. At the beginning of the year, one software package has been sold for $6200. The inventory cost associated with it was $1750. XYB company also adds a one-year service contract in the sale with a value of $800 without adding any extra cost to the original software sale. Calculate the revenue earned at the beginning of the year that comes from the software sale, and the revenue recognized from the service contract. Include journal entry, and when is revenue recognized?