A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on September 1.The customer received the bill on September 13 and mailed a $5,000 check on September 30.Discount Paper Supply received the check on October 4.On which of the following dates should Discount Paper Supply record sales revenue?

Question

Quizplus · Accepted Answer

Sales revenue should be recorded on the date the goods were delivered, which is September 1, according to the revenue recognition principle. This principle states that revenue is recognized when it is earned, regardless of when payment is received.

A Customer Purchased and Received $5,000 of Goods on Credit