Raleigh Co.is a mail order clothing retailer.All items are shipped to customers FOB shipping point and must be prepaid by the customer before any items are shipped.At what point should Raleigh recognize revenue?

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Revenue should be recognized at the time of shipping since the terms are FOB shipping point, meaning that legal ownership and responsibility of the goods transfer from Raleigh Co. to the customer at the point of shipment. Prepayment by the customer also indicates that the revenue has been earned by Raleigh Co. at the time of shipment.