When multiple performance obligations exist in a contract, they should be accounted for as a single performance obligation when a. each service is interdependent and interrelated. b. both performance obligations are distinct but interdependent. c. the product is distinct within the contract. d. determination cannot be made. a. each service is interdependent and interrelated. new age computers manufactures and sells pagers and radio paging systems which include a 180 day warranty on product defects. it also sells an extended warranty which provides an additional two years of protection. on may 10, it sold a paging system for $4,500 and an extended warranty for another $1,400. the journal entry to record this transaction would include a. a credit to warranty revenue of $5,900. b. a credit to warranty revenue of $1,400 c. a credit to sales of $4,500 and a credit to warranty revenue of $1,400 d. a credit to unearned warranty revenue of $1,400.