Analyze the following issue:

Q) Revenue recognition issue with the Women's Television Inc. contract.

One of La Belle's keys to success is that it has one of the fastest ' 'time to market" for its advertisers. La Belle achieves this tight production process by working closely with its printer and using Magazine Canada's AdDirect webbased service. As a result, La Belle guarantees its advertisers that their advertising can be in the hands of La Belle readers within two weeks of when they submit the advertising material for publishing. Advertisers, or their agencies, electronically submit their \"print ready" digital ads to the ad portal in the ISO standard le format along with instructions regarding the desired ad size and location. The ad portal's purpose is to facilitate production. It is not involved with billings and collections, which are handled by La Belle's accounting department. The ad portal determines if the ads are printready based on the publishers\" specications. Once the ad is printready it is transferred to La Belle and an email conrmation is sent to the advertiser. La Belle's accounting practice is to recognize advertising revenue at the onsale date of the issue(s). Advertising contracts can range from one month to one year. This is the rst time that La Belle has entered into a coadvertisin g contract with \"'omen's Television Inc. (\"'TI). The two companies felt that given their shared customer base, they could create a lot of synergy through a coadvertising campaign. The agreement guarantees WTI the inside front cover spread in each issue of Belle for one year, starting October 2019. This spread will not be Bella's conventional advertising; rather it is what's called \"branded Jsion\" a combination of advertising, editorial content (such as interviews with stars and reviews of TV programs), and contests. This unique agreement represents an exchange of services and no cash is exchanged between the two parties. La Belle\" 5 editorial and marketing personnel will develop all the material for WTI and WTI will develop talentendorsed vignettes based on recent La Belle articles and themed programming for La Belle. As of yearend, La Belle has produced three inside 'ont cover spreads. The WT] developed campaign for La Belle will air on its network starting in January 2020. According to Bella's Media Kit, the normal cost of an inside front cover spread is $120,000 for one advertisement, $1 15,000 per spread for six repeats, and $110,000 per spread for 12 repeats. La Belle has recognized $330,000 in revenue related to the WTI contract as of yearend. It has not recognized any costs related to WT] vignettes because the campaign will not be under way until aer yearend. WTI estimates that the regular rate for this type of service is approximately $1,700,000