Assume that a company collects two-thirds of its sales revenue in the month of sale and the remaining one-third in the following month.

Required: How much revenue has the company actually earned in the month of the sale?

Should the company record revenue on the income statement in the month when it collects the cash or when the work was done to earn the revenue?

What reasons do you have for choosing one alternative over the other? (What are your reasons for not choosing the other alternative?)  lp85