Under the accrual method of accounting, a retail store recognizes revenue at the time the customers receive and pay for the merchandise.

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In the accrual method of accounting, revenue is recognized when it is earned, regardless of when payment is received. Therefore, a retail store would recognize revenue at the time the merchandise is delivered to the customer, even if payment is not received until later.

Under the Accrual Method of Accounting, a Retail Store Recognizes