A fee for recording a new customer in the seller's information system should be treated as a separate performance obligation and should be recognized upon payment.

Question

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According to revenue recognition principles under ASC 606, a fee for recording a new customer in the seller's information system is not considered a separate performance obligation unless it transfers a distinct good or service to the customer. Typically, such fees are part of the transaction price for the promised goods or services and recognized as revenue when those goods or services are transferred to the customer.

A Fee for Recording a New Customer in the Seller's