Seadrill Engineering Licensed Software to Oil-Drilling Firms for 5 Years

Seadrill Engineering licensed software to oil-drilling firms for 5 years.In addition to providing the software, the company also provides consulting services and support to ensure smooth operation of the software.The total transaction price is $350,000.Based on standalone values, the company estimates the consulting services and support have a value of $100,000 and the software license has a value of $250,000.Assuming the performance obligations are not interdependent, the journal entry to record the transaction includes

A) a credit to Sales Revenue for $250,000 and a credit to Unearned Service Revenue of $100,000.
B) a credit to Service Revenue of $100,000.
C) a credit to Unearned Service Revenue of $100,000.
D) a credit to Sales Revenue of $350,000.