Q3 Max Wilson, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Wilsons law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why? On chegg it had answered.

In completing the engagement in Question 3, Wilson pays no costs in March, $2,500 in April, and $2,200 in May (incurred in April). How much expense should the firm deduct from revenues in the month when it recognizes the revenue? Why?