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Scenario 2: On September 1, 2020, Fence Co. installed a new barbed wire fence for a local farmer. On this date, Fence Co. invoiced the
Scenario 2: On September 1, 2020, Fence Co. installed a new barbed wire fence for a local farmer. On this date, Fence Co. invoiced the farmer for $3,000, but allowed the farmer to delay payment for 30 days. Fence Co. performed a credit check on the farmer and found no issues. Using the table below, determine when Fence Co. should recognize revenue for the $3,000 fence: Revenue Recognition Criteria Reasonably assured to be collectable Date Criterion is Met September 1, 2020 Reasonably assured to be measurable October 1, 2020 Performance achieved Date revenue should be recognized Identify one expense that would be "matched" against this revenue
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