Suppose a company located in St. Louis, Missouri, needs to ship goods to a customer located 2,000 miles away in Portland, Oregon. The company arranges to have CSX Corporation, a large transportation company, ship the goods to Portland by rail. CSX will be paid $2,000 for shipping the goods, but payment will not be made until after the goods have been delivered.

Consider when GAAP allows companies to recognize revenue, as discussed in Chapter 2. When should CSX report it has earned the revenue for shipping the goods?