On August 31, Farrell Corporation signed a one-year contract to provide services to Harris Company for $30,000 . Harris will pay for the services on September 1 . Using the accrual basis of accounting, when should Farrell Corporation recognize revenue?
a. September 1 of the current year when the cash is received from Harris
b. On August 31 of the next year when all services have been provided
c. Throughout the year as the revenue is earned
d. At December 31 of the current year, and August 31 of the next year
c
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