n 2018, Ginzel Corporation agreed to provide a client with 20 detailed marketing analyses of its clients key products for a total fee of $110,000.
n 2018, Ginzel Corporation agreed to provide a client with 20 detailed marketing analyses of its clients key products for a total fee of $110,000. The fee was computed as $5,000 per report x 20 reports = $100,000, plus $10,000 to extract the necessary data from the clients system and convert it into the format Ginzel needs to do the analysis. It cost Ginzel $4,000 to complete the data extraction and conversion.
As of December 31, 2018, Ginzel has completed the conversion of the data and has completed and delivered 7 of the 20 marketing reports to the client.
Required:
How much revenue should Ginzel recognize in 2018?
How should Ginzel account for the $4,000 in costs it incurred to extract and convert the clients data?
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