Revenue recognition In October 2014, Blackbird Inc.signed a contract for $30,000 with the BH Law office to provide legal services for Blackbird Inc.for the remainder of 2014 and all of 2015.Assume that BH can reliably estimate future direct costs associated with the contract.The following services were performed based on the estimate by BH: 
Instructions Under the earnings approach,
a)When should BH recognize revenue in this situation? Explain.
b)Prepare journal entries to recognize revenues related to this contract on BH's books.
Definitions:
Pies Per Day
A measurement of production output, often used metaphorically to represent the daily productivity or output level of a particular good.
Pizzas
A popular dish of Italian origin consisting of a usually round, flat base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients, baked at a high temperature.
Production
The procedure of integrating assorted material and immaterial elements (such as schemes and knowledge) to manufacture items for consumer use.
Specialization And Trade
In economics, specialization refers to the practice of focusing production on a limited scope of products or services to gain efficiency, while trade involves the exchange of these goods or services between individuals or entities, often leading to increased overall economic welfare.
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