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.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

Question Posted: