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On November 1, 2021, 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 $5,280 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2022. Taylor should recognize revenue in 2021 in the amount of Multiple Choice $5,280. $0. $880. $2,640.

Respuesta :

Answer:

$880

Explanation:

The computation is shown below:

= Agreed amount to pay × number of months ÷ total number of months

= $5,280 × 2 months ÷ 12 months

= $880

Hence, the revenue should be recognized in the year 2021 is $880

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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