Accrual Basis of Accounting For the following situations, indicate the date on which revenue would be recognized,
Question:
Accrual Basis of Accounting For the following situations, indicate the date on which revenue would be recognized, assuming the accrual basis of accounting.
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 May 2.
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.
Step by Step Answer:
Financial Accounting The Impact On Decision Makers
ISBN: 9780324655230
6th Edition
Authors: Gary A. Porter, Curtis L. Norton