Smith & Sons is a CPA firm that provides proprietary software to its clients. One of its software packages sells for $150 and contains pre-programmed tutorials on basic accounting concepts. Another product sells for $3,000 and contains Smith & Sons' archive of accounting standards and articles, which Smith & Sons updates on a weekly basis and downloads to archive users for the two years following purchase of the product.
Required:
If a customer purchases both software packages on June 1, 2018, how much revenue should Smith & Sons recognize for the year?

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The Answer of Smith & Sons is a CPA firm that provides proprietary software to its clients. One of its software packages sells for $150 and contains pre-programmed tutorials on basic accounting concepts. Another product sells for $3,000 and contains Smith & Sons' archive of accounting standards and articles, which Smith & Sons updates on a weekly basis and downloads to archive users for the two years following purchase of the product.
Required:
If a customer purchases both software packages on June 1, 2018, how much revenue should Smith & Sons recognize for the year?

Smith & Sons Is a CPA Firm That Provides Proprietary