Sales should be recorded, at the earliest, when:
A)the order is received.
B)the order is received and credit is approved.
C)credit is approved and it is verified that there is enough inventory to fill the order.
D)the shipment takes place.

Question

Quizplus · Accepted Answer

Sales should be recorded when the shipment takes place because this is when the transfer of ownership occurs, and the revenue recognition principle is satisfied.

Sales Should Be Recorded, at the Earliest, When