Sarjit Systems sold software to a customer for $166,000. As part of the contract, Sarjit promises to provide "free" technical support over the next six months. Sarjit sells the same software without technical support for $144,000 and a stand-alone six-month technical support contract for $36,000, so these products would sell for $180,000 if sold separately. Prepare Sarjit’s journal entry to record the sale of the software.

Dr Cash $166,000

Cr Deferred revenue $33,200

Cr Sales revenue $132,800

Explanation:

Preparation of Sarjit’s journal entry to record the sale of the software.

Dr Cash $166,000

Cr Deferred revenue $33,200

($166,000 × 20%)

Cr Sales revenue $132,800

($166,000 × 80%

Workings:

First step is to calculate the total fair values percentage

Total fair values percentage= ($144,000 ÷ [$36,000 + $144,000])

Total fair values percentage=80%

Second step is to calculate the technical support percentage

Technical support percentage=($36,000 ÷ [$36,000 + $144,000]).

Technical support percentage=20%

Now let calculate the amount recognized and the remaining amount recognized

Recognize amount= ($166,000 × 80%)

Recognize amount=$132,800

Remaining amount recognized= ($166,000 × 20%)

Remaining amount recognized=$33,200

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

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