Allocating Transaction Price to Performance Obligations and Recording Sales
Software Supplier Inc. sells to a customer a perpetual software license and postcontract customer support for a month period, commencing at the time that the software is activated. Software Supplier Inc. charges $ upfront when the software is purchased and $ a month for months, due at the end of the month. Software Supplier Inc. sells the software separately for $ while the standalone selling price of the postcontract customer support is $
Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
a How should the transaction price be allocated among the performance obligations
b Prepare Software Supplier's journal entry to record sale of software to the customer and the entry for the first monthly payment.
Note: If a journal entry or a line of the journal entry isn't required for the transaction, select NA as the account names and leave the Dr and Cr answers blank zero
tableAccount Name,DrCr;
