Charlie is in the business of sharpening skates for youth hockey programs. He signed a contract on September 1, 2020 for $35,000 with the Waltham Hockey League to sharpen the team’s skates for the 2020-2021 hockey season, which is played from the months of September 2020 through March 2021. The contract states that the Waltham Hockey League will pay Charlie a deposit of $3,000 on September 1, 2020, $10,000 on October 31, 2020, $10,000 on
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Charlie is in the business of sharpening skates for youth hockey programs. He signed a contract on September 1, 2020 for $35,000 with the Waltham Hockey League to sharpen the team’s skates for the 2020-2021 hockey season, which is played from the months of September 2020 through March 2021.
The contract states that the Waltham Hockey League will pay Charlie a deposit of $3,000 on September 1, 2020, $10,000 on October 31, 2020, $10,000 on
December 31, 2020 and the remaining $12,000 on March 31, 2021.
Charlie performed the services as contracted throughout the hockey season and contract period.
What was the amount of revenue Charlie should recognize for the year-end December 31, 2020 on the Waltham Hockey League contract?
a. $35,000
b. $10,000
c. $23,000
d. $20,000
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