Answer:
The answer is: Rawl Co. should recognize the related revenue evenly over the contract year as the services are performed.
Explanation:
According to the conservatism principle, Rawl Co. should record revenues and assets only when you are sure that they will occur. So they should record revenue only as the service is provided on a monthly basis.
It should determine the monthly payment = $540 / 12 = $45 per month.
So at the end of every month, it should recognize $45 as revenue.