How to recognize revenue on a percentage basis for kit items?
Ex: Kit X will contain 3 items, item A, item B and item C. Kit X is sold for $1,000.00, invoice to customer will reflect Kit X selling price @ $1,000.00, with items A, B and C listed on invoice with no selling price. Invoice only reflects cost of kit X. Need to recognize revenue @ 33.33% for item A, @ 33.33% for item B, and @ 33.34% for item C. What is the best way to accomplish the above revenue recognition for kit items? The idea is that if customer buys a kit, the price is lower at the kit level, then if the customer were to buy all three items separately.
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