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How should Delta Inc recognise revenue from this contract

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Question - Delta Inc. is global manufacturer of printing equipment. In addition to selling printing equipment, Delta Inc. also provides maintenance services and supplies (paper, ink, etc.) to customers. On 20 June 2020, Delta Inc. signed a contract with a customer under which Delta would provide printing equipment plus maintenance services and supplies for three years. Delta delivered and installed the equipment on 30 June 2020. The customer accepted the equipment on the same day. On 31 July 2020, the customer paid $10,000 for the equipment and maintenance services for three years starting on 30 June 2020. Payments for supplies will be made monthly over the next three years based on the actual amount of supplies used, for which Delta will bill the customer separately. How should Delta Inc. recognise revenue from this contract?

Reference no: EM132996155

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