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Company A entered into a two-year contract with a customer to maintain the customers fleet of delivery vehicles. Company A receives payments from the customer

Company A entered into a two-year contract with a customer to maintain the customers fleet of delivery vehicles. Company A receives payments from the customer at regularly scheduled intervals during the contract and provides monthly maintenance services needed to keep the vehicles in working order.

How should Company A recognize revenue on this contract? What is the justification for your answer?

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