Joe Davon (a partner in the law firm of Davon & Davon) agrees to review a contract for Gregg Inc. at a fixed fee of $1,000. The law firm follows the accrual basis of accounting. Gregg pays a deposit of $400 on February 25. Joe Davon reviews the contract on March 5. The $600 balance is paid on April 15. The legal service revenue of $1,000

Select one:

a. Should be recognized in February.

b. Should be recognized in March.

c. Should be recognized in April.

d. Should be recognized in two installments ($400 in February and $600 in April).