Co. enters into a contract on 1 September 2018 to conduct telephone marketing activities on behalf of a customer

The contract has a price of $8 000 and requires. F Co. to contact 10 000 households over a period of six months in order to enquire aboul buying habits and promote its customer.

The customer is invoiced equal amounts three months and six months after the commencement of the contract. By F Co. year end of 31 December 2018, it has contacted 3 500 of the 10 000 customers

What amounts does F Co. recognise in its financial statements in the year ended 31 December 2018?

revenue of $4 000 and a receivable of $4 000

O revenue of $4 000 and a contract liability of $4 000

O revenue of $2 800, a receivable of $4 000 and a contract asset of $1 200

revenue of $2 800, a receivable of $4 000 and a contract liability of $1 200

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