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On October 25, Yacht Doc received $210,000 for a yacht valued at $190,000 and a service contract to be performed evenly from November through February. During November, the yacht was delivered and 1 month of the service contract was performed. The remaining services are to be performed evenly over the next 3 months. In what month should the service contract be recognized as revenue

Answer :

Answer:

5,000 in each month from November to February

Explanation:

210k - 190k = 20k

5k at delivery and the remaining performed over three months. Therefore $5000 per month

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