Easywrite Software Company shipped software to a

customer on July
Easywrite Software Company shipped software to a customer on July

Easywrite Software Company shipped software to a customer on July 1, 2018. The

arrangement with the customer also requires the company to provide technical support over the
next 12 months and to ship an expected software upgrade on January 1, 2019. The total
contract price is $243,000, and Easywrite estimates that the individual fair values of the
components of the arrangement if sold separately would be as follows:

Software .................................... $210,000

Technical support .......................... 30,000

Upgrade ..................................... 30,000

Required:

1. Determine the timing of revenue recognition for the $243,000.

2. Assume that the $243,000 contract price was paid on July 1, 2018. Prepare a journal entry to
record the cash receipt. Disregard the cost of the items sold.

Easywrite Software Company shipped software to a customer on July

SOLUTION-- http://expertanswer.online/downloads/easywrite-software-company-shipped-
software-to-a-customer-on-july/

See Answer here expertanswer.online

Powered by TCPDF (www.tcpdf.org)