Your company sold software and included an extended 3 year service contract for a total of $200,000 on May 1st. You will receive $50,000 at installation on June 1st and the balance of $150,000 on Dec 31st. You must explain to your sales team, who get commission on recorded sales, when the sale would be recorded if (Your grade is based on your first submission!!!!) Do not show journal entries, or quote or paraphrase the book. Answer in your own words.

1. These are interdependent and cannot be priced separately.

2. They are not interdependent and the software, if sold separately would cost 200,000 and the extended warranty $25,000.