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1 . Inventory is purchased on credit on 1 August and is received on 1 4 August. It is paid for on 1 2 September.
Inventory is purchased on credit on August and is received on August. It is paid for on September.
A customer buys a product on credit on November and takes immediate delivery, promising to pay on February of the following year.
A customer orders a custombuilt machine and pays when the order is placed on February. The machine is delivered on March.
The company uses a substantial amount of electricity. The electric utility issues bimonthly bills ie one every two months three weeks following the twomonth usage period.
A sale on credit is completed on January; the product is delivered on February. Payment is received on March.
In what period will the initial transaction be recognized and the element realized cash for each of the scenario mentioned above.
April
August
August & November
December
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