Niwot Co. sells products and service plans both separately and bundled together. Willy Loman, a Niwot Co. salesman, sold a Widgetron in 2014 for $1,000, its normal price, and told the customer he'd 'throw in the 3-year service plan for free', which the company normally sells for an additional $150. The product shipped, the customer paid, and $1,000 in revenue was recognized in 2014. Is this correct? Why or why not?
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