Quarterly Accrued Revenue Calculation
A business purchases annual employee insurance policies from Company A for $80,000 per year. If the insurance coverage period runs from January 1 to December 31 and Company A's first-quarter accounting period ends on March 31, what amount should Company A recognize as accrued revenue for the quarter?
A
$0
B
$60,000
C
$80,000
D
$20,000
E
$40,000