On October 25, 2020 Quick Corp. prints a cheque for November's rent payment. Quick Corp. mails the cheque on October 27 to the landlord. The landlord receives the cheque October 31 and cashes the cheque on November 2. When should Quick Corp. record the rent expense associated with this transaction?

Question

Quizplus · Accepted Answer

Quick Corp. should record the rent expense in November, as the expense is associated with November's rent, and expenses are typically recorded in the period they relate to, regardless of when the payment is made or the cheque is cashed.