A customer purchased $2,000 of goods on credit from Holiday Party Supply on May 1. The customer received the bill on May 15 and mailed a $2,000 cheque on May 28. Holiday received the cheque on May 30. In recording this transaction, Holiday should credit Sales Revenue for $2,000 on which of the following dates?

Question

Quizplus · Accepted Answer

Holiday Party Supply should recognize the revenue on May 1, the date when the goods were sold and the transaction was completed, according to the accrual basis of accounting.

A Customer Purchased $2,000 of Goods on Credit from Holiday