Question: For each scenario, determine when to recognize revenue. a. Top Notch Processing, Inc. enters into a contract to provide monthly accounting services to a customer

For each scenario, determine when to recognize revenue.
a. Top Notch Processing, Inc. enters into a contract to provide monthly accounting services to a customer for one year.
b. A customer purchased a motorcycle from Bright Star Cycles for $ 16,000. The customer takes delivery immediately.
c. A customer purchased a motorcycle from Revup Cycles for $ 18,000. Prior to delivery, Revup performs a custom paint job on the motorcycle that the customer required as a condition of purchase.
d. Seahawk, Inc. enters into a contract to deliver a customized accounting system to its client for $ 600,000. Seahawk estimates that it will take 1,000 labor hours to complete. Before completion, the customer cannot use the system.
e. Seahawk, Inc. enters into a contract to deliver an accounting system to its client for $ 600,000. Seahawk estimates that it will take 1,800 labor hours to complete. The customer has control of the system as it is being created.

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