Ace Electronics sold $5,000 of goods to customers of which $3,000 has been collected.Ace Electronics should report revenues of:

Name: Ace Electronics sold $5,000 of goods to customers of which $3,000 has been collected.Ace Electronics should report revenues of:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to the revenue recognition principle, revenue is recognized when it is earned, regardless of when the cash is collected. Therefore, Ace Electronics should report revenues of $5,000, as that is the total amount of goods sold.

Ace Electronics Sold $5,000 of Goods to Customers of Which