-Jeter Company ordered 400 toy wagons from Lamar, Inc. on May 1, 2018. Jeter Company paid for them on May 20 at a cost of $3 each. Jeter sold 50 of them on June 2, 2018, for $4 each to Gilloz Company. Gilloz Company paid Jeter on June 10.
On which date should Jeter Company recognize revenue?

Question

Quizplus · Accepted Answer

Jeter Company should recognize revenue on June 2, when they sold 50 of the toy wagons to Gilloz Company for $4 each. This is the point at which the company has earned revenue from the sale of goods.

-Jeter Company Ordered 400 Toy Wagons from Lamar, Inc