Sage Technology is a full-service technology company that provides equipment, installation services, and training Products and services can be purchased separately or as a bundled package. Big Container Corporation purchased the bundled package from Sage for $120,000. Estimated standalone fair values are: computer equipment $75,000, installation $50,000, and training $25,000, on March 15. The journal entry to record the transaction on March 15 will include a O credit to Sales Revenue for $120,000. O credit to Unearned Service Revenue of $20,000. O debit to Unearned Service Revenue of $25,000. O credit to Service Revenue of $50,000.
Sage Technology is a full-service technology company that provides equipment, installation services, and training Products and services can be purchased separately or as a bundled package. Big Container Corporation purchased the bundled package from Sage for $120,000. Estimated standalone fair values are: computer equipment $75,000, installation $50,000, and training $25,000, on March 15. The journal entry to record the transaction on March 15 will include a O credit to Sales Revenue for $120,000. O credit to Unearned Service Revenue of $20,000. O debit to Unearned Service Revenue of $25,000. O credit to Service Revenue of $50,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sage Technology is a full-service technology company that provides equipment, installation services, and training. Products and
services can be purchased separately or as a bundled package. Big Container Corporation purchased the bundled package from Sage
for $120,000. Estimated standalone fair values are: computer equipment $75,000, installation $50,000, and training $25,000, on
March 15. The journal entry to record the transaction on March 15 will include a
O credit to Sales Revenue for $120,000.
O credit to Unearned Service Revenue of $20,000.
debit to Unearned Service Revenue of $25,000.
O credit to Service Revenue of $50,000.
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