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Show all journal entries required

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Question;Contract ONE;Show all journal entries required to;reflect this sale;a. Software bundle sold at the end of the 20XO with a 10 percent;discount plus free installation and three years of additional free software;maintenance and support (in this exercise, in order to meet sales quotas, free;services are added to the contract);b. Contract signed and the customer accepts the software and it is;installed on 12/29/XO.;List;Price of the Bundle $ 20,000,000;Less;Discount (2,000,000);Total;sales price $ 18,000,000;Bundle Contents;a. Software Package - Never offered without one-year support, one-year;maintenance, and installation and formal customer acceptance.;b. Software Support for one year - First year of support is always;included, never sold separately.;c. Annual renewal of software support is offered at a list price of;$2,000,000. No one can remember this ever being discounted.;d. Software Maintenance - First year always included in pricing;never sold separately. Renewal of full maintenance support is at a list price;of $2,000,000.;Special Payment Terms;12/31/XO: 30 percent upfront at time of delivery and installation;3/31/X1: 40 percent at end of;first quarter;12/31/X1: 30 percent at the end of the 2nd year

 

Paper#39198 | Written in 18-Jul-2015

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