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Peachpit Software Developers shipped its accounting package to a customer on September 10, 20X1. In...

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Accounting

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Peachpit Software Developers shipped its accounting package to a customer on September 10, 20X1. In addition to the software, Peachpit's contract requires the company to provide: (1) training to the customer's accounting staff during October of 20X1 and again in January 20X2 when the upgrade is released75% of the training hours are provided during October, (2) technical product support for one year starting October 1, 20X1, and (3) a major upgrade to the software early in 20X2. The customer paid the total contract price of $80,000 upon receipt of the invoice on September 17, 20X1. Peachpit would charge the following if these individual contract elements were sold separately: Accounting package (software) Training customer's staff Customer support Accounting software upgrade Totals Fair Value $ 65,000 10,000 15,000 10,000 $100,000 Required: a. Prepare a journal entry to record receipt of the cash payment. b. Determine the amount of revenue to be recognized in 20X1 and prepare the necessary journal entry

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