Answer:
840 revenue earned
Explanation:
It will recognize revenue for the earned portion of the contract:
November 1st to December 31th
It would be 2 months earned
if 5,040 is the value of the one-year contract then
5,040 / 12 = 420 value of 1 month
420 x 2 = 840 revenue earned for the period November 1st to December 31th
The payment date is irrelevant, because the service are earned through time. It would become bad debt expense if not colelcted later down the road.
