The Canon Corporation sells ten copiers to the Title Company on October 15 for $40,000. Canon delivers the copiers to Title on October 20; Title pays $16,000, and agrees to pay the balance on November 10.
-Under the accrual basis,how much revenue should Canon recognize in November?

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, revenue is recognized when it is earned, not when payment is received. Canon should recognize the full $40,000 revenue in October when the copiers are delivered, not in November.

The Canon Corporation Sells Ten Copiers to the Title Company