Pool Patrol, Inc. offers professional pool cleaning services to residential customers. The company cleans each pool that
Question:
Pool Patrol, Inc. offers professional pool cleaning services to residential customers. The company cleans each pool that it services once per month throughout the year. Homeowners are billed for an annual fee payable in advance prior to their anniversary date. A new customer paid his first annual fee of $780 on May 1,v2022. Pool Patrol, Inc. has provided the agreed monthly cleaning services since that time.
Required:
How much revenue should Pool Patrol, Inc. recognize with respect to this customer’s payment for the fiscal year ended September 30, 2022?
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