BoTeck is a full-service technology company. It provides equipment, installation services, and training services. Customers can purchase any product or service separately or as a bundled package. On May 3, Box-Rite Corporation purchased computer equipment, installation, and training for a total cost of $120,000. Estimated stand- alone fair values of the equipment, installation, and training are $75,000, $50,000, and $25,000 respectively. The journal entry to record the sale and installation on May 3 will include
A) credit to Service Revenue of $50,000.
B) credit to Sales Revenue for $120,000.
C) credit to Unearned Service Revenue of $20,000.
D) debit to Unearned Service Revenue of $25,000.

Question

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The Answer of BoTeck is a full-service technology company. It provides equipment, installation services, and training services. Customers can purchase any product or service separately or as a bundled package. On May 3, Box-Rite Corporation purchased computer equipment, installation, and training for a total cost of $120,000. Estimated stand- alone fair values of the equipment, installation, and training are $75,000, $50,000, and $25,000 respectively. The journal entry to record the sale and installation on May 3 will include
A) credit to Service Revenue of $50,000.
B) credit to Sales Revenue for $120,000.
C) credit to Unearned Service Revenue of $20,000.
D) debit to Unearned Service Revenue of $25,000.

BoTeck Is a Full-Service Technology Company