A company billed a client for services performed on January 10.The customer paid one-half of the amount owed on January 20 and the other one-half on February 24.When should the company record the related Service Revenue?

Question

Quizplus · Accepted Answer

According to the accrual basis of accounting, revenue is recognized when it is earned, regardless of when the payment is received. Since the services were performed on January 10, the revenue should be recorded on that date.

A Company Billed a Client for Services Performed on January