Your company orders and receives supplies in January,pays for them in February,provides services that use those goods up in March and is paid by customers in April.Using the accrual basis of accounting:

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With the accrual basis of accounting, expenses and revenues are recorded when they are incurred or earned, regardless of when the cash is exchanged. In this scenario, supplies are ordered and received in January, but the expense is not incurred until the company pays for them in February. Therefore, the expense is recorded in February. The services provided that use those supplies up are recorded as an expense in March. The revenue is earned in March when the services are provided, even though the payment is not received until April. Hence, expenses and revenues are recorded in March.

Your Company Orders and Receives Supplies in January,pays for Them