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A company receives a large order from a client in October. The company orders and receives all of the materials to produce the product in
A company receives a large order from a client in October.
The company orders and receives all of the materials to produce the product in November.
The company manufactures and delivers the product to the client in December and sends the customer a bill.
The client pays the bill in January.
What period should the sale be recorded and reported as revenue on the income statement? What about the materials expenses that relate to this sale?
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