Zane Corporation sells $1,000 worth of goods on July 25 on credit.The customer sends the company a check on August 15.The customer receives the goods on September 1.Assuming the company uses accrual accounting,the sale will be recorded in _____.

Question

Quizplus · Accepted Answer

The sale is made on July 25, so it should be recorded in the month of July, which is when revenue is recognized under the accrual accounting method. The fact that the customer sends a check in August and receives the goods in September does not affect the timing of the revenue recognition.

Zane Corporation Sells $1,000 Worth of Goods on July 25