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This video tutorial discusses how to account for bundled services in multi-element transactions. These transactions occur when a software company sells a package deal that includes software installation, upgrades, customer support, and employee training. Using the example of Suzy Software selling a package for $50,000, the tutorial explains how to recognize this revenue by allocating the price to each element of the bundle. The video demonstrates the process of determining when and how much revenue should be recognized for each element, such as upgrades and customer support.
