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3 May, 15:41

A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on September 1. The customer received the bill on September 13 and mailed a $5,000 check on September 30. Discount Paper Supply received the check on October 4. On which of the following dates should Discount Paper Supply record sales revenue?

A. September 1

B. September 13

C. September 30

D. October 4

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Answers (1)
  1. 3 May, 15:45
    0
    A

    Explanation:

    Sales revenue are recorded when the risks and reward are transferred to the buyer.

    The key factors to determine a complete sales arrangement are price, evidence of sales agreement and delivery to the buyer.

    In the given scenario of discount paper, the price of $5000 has been determined and delivered to the customer.

    The customer did not object to the transaction, which mean acceptance.

    Therefore the sales revenue should be recorded on the date of dispatch which is September 1
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Home » Business » A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on September 1. The customer received the bill on September 13 and mailed a $5,000 check on September 30. Discount Paper Supply received the check on October 4.
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