TechGate has signed a new two-year contract with a customer providing access to TechGate's cloud-based software engineering tool. TechGate operates on an accrual basis and will invoice the customer $12,000 for full amount of the first-year subscription on 1/1/22. The first year of the agreement runs from 1/1/22 to 12/31/22. At the end of January 2022, how much revenue should TechGate recognize from the agreement?

Answer rating: 100% (QA)

Since TechGate uses accrual accounting they recognize revenue as it is earned not necessarily when t... View the full answer