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 $4,440 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 $4,440. $740. $2,220. $0.

The correct answer is $740

Explanation:

The amount which will be recognized by Taylor as revenue in the year 2021 is computed as:

Amount = Agreed amount to pay × Number of months/ Total months

where

Agreed amount to pay is $4,440

Number of months is 2 months (that is November and December)

Total months in a year is 12

Putting the values above:

Amount = $4,440 × 2/12

Amount = $740

This arrangement qualifies for the recognition of revenue over the time as the customer consumes the advantage of the seller service as the seller offers. Therefore, Taylor would be acknowledge the revenue of $740 .

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

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anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

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