Company K sells goods worth $20,000 on credit in December. The customers make the payment in January of the following year. Analyze the revenue recognition for this transaction, considering the principles of the Accrual Concept and Realization Concept.

The Accrual Concept dictates that revenue should be recognized when it is earned, regardless of when cash is received. Therefore, the $20,000 revenue from the sale of goods should be recognized in December, when the sale occurs, even though the cash is received in January. This ensures that the company's financial statements accurately reflect its performance in the period in which the revenue is earned, adhering to the Realization Concept.