Question

On October 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $4,800 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019. Taylor should recognize revenue in 2018 in the amount of Group of answer choices

Answer 1

Answer:

$1,200

Explanation:

Calculation to determine what Taylor should recognize as revenue in 2018

Recognized Revenue =($4,800 × 3/12 of the contract duration)

Recognized Revenue =$1,200

Therefore Taylor should recognize revenue in 2018 in the amount of $1,200