BoTeckis 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.
Answer: C
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