For the following situations, indicate the date on which revenue would be recognized, assuming the accrual basis
Question:
_____________a. On June 10, a customer orders a product over the phone. The product is shipped to the customer on June 14, and the customer pays the amount owed on July 10.
_____________b. On March 15, a law firm agrees to draft a legal document for a client. The document is completed and delivered to the client on April 5, and the client pays the amount owed on May2.
_____________c. A homeowner signs a contract on August 6 to have a company install a central air conditioning system. The work is completed on August 30, and the homeowner pays the amount owed on September 25.
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Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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