A company received an order from a customer in June for services to be provided. Those services were provided in July, and the customer paid the full amount in August. According to the revenue recognition principle, in which month should the company record revenue?
A) June.
B) July.
C) August.
D) Evenly over the three months.
Ch3 answer: B
A customer purchased a drill press on November 14 on account from Sears. The drill press was delivered two weeks later. The customer paid for the drill press on December 5. When should Sears record the revenue for this transaction according to the revenue recognition principle?
A) November.
B) December.
C) Evenly in each of the two months.
D) One-third in November and two-thirds in December.
Ch3 answer: A
