SVK Corporation is a manufacturer of printed circuit boards.

SVK received a purchase order from a customer for 200 circuit boards. Since the boards were in-stock, SVK could ship immediately.

However, the customer's credit rating was very poor. SVK's President decided to ship the boards anyway, in the hope that the customer could pay, after all.

SVK immediately increased the allowance for doubtful accounts for the amount of the sale in order to address the collection risk.

Revenue will be recorded at shipment under current ASPE standards

O True

O False