A customer of JRT Company ordered merchandise inventory on December 15, 2013. The order was packed on
Question:
A customer of JRT Company ordered merchandise inventory on December 15, 2013. The order was packed on December 31 and shipped on January 2, 2014. JRT's year end is December 31. Erin, the accountant, recorded the sales revenue in the December 31, 2013, income statement. She said, "We might as well recognize the revenue at December 31, we know the order was shipped. What difference do a couple of days make?" Do you agree? Explain.
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Somshukla Chakraborty
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