Farcel Corporation hired you as their accountant. The Corporation is seeking your professional guidance as to what point in time their company should record revenues as it relates to customers renting their Storage Units under generally accepted accounting principles (GAAP).

The current business model is that the Storage Units are rented by customers for a period of nine months and all of the monies are collected for the entire nine months on the first day of the rental of the Storage Units.

The corporation indicated that the nine months cash collection should be recorded as revenues as it determined by the date the company received the cash as they have already collected the cash.

Please do not plagiarize your responses as it will be checked by CUNYs plagiarism software. If your work is plagiarized, you will receive a zero and will be referred to Academic Affairs for the appropriate action. This includes copying statements directly from your textbook.

Required:

1. Post an original response to the situation above. Do you agree or disagree with the reasoning of Farcel Corporation? State why you agree or disagree and support your answer by relating it to the accrual basis of accounting and any other accounting principles. Once you post your response, you will be able to see your classmates responses. (12 Points)