Petronila Professional Services, received a written, approved contract to deliver economic consulting services in January 2, 2020, with service and payment commencing in one month, February 1, 2020. The contract specifies the services that Petronila is to perform, and the payment terms. Petronila and the customer both can cancel the contract without penalty prior to commencing service. Does Petronila have a contract for purposes of revenue recognition on the day the contract is received?

A. Yes, because Waldman has a written approved contract.

B. No, because Waldman and the customer can cancel without penalty, and neither has performed an obligation under the contract.

C. Maybe, depending on whether Waldman can estimate collectability of the receivable.

D. There is insufficient data on which to base an answer.