We sell a subscription agreement to a client. The contract value for the subscription is $200,000. The client pays immediately. The subscription service is made available to the client immediately. The subscription has 100 sections of material on day 1 and we will add a new section of material each month of the 12 month contract. There are at least three ways to account for this income in the sales journal.
What are they and what do you consider to be the most compliant with GAAP?