Exercise 4-21 (Algorithmic) (LO.2)

Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12- and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2022, Bigham sold the following customer contracts:

Length of contract	Total Proceeds
12 months	$29,200
24 months	$58,400