Question

Daphne bought a dishwasher and paid for it with her credit card. The company delivered the dishwasher to her the very same day. When should Daphne record the sale?

Answer 1

Daphne should record the sale the same day as it was the day of the delivery. Whenever a customer pays for a product, no matter the method of payment, the funds should always be considered in holding (otherwise called in escrow) until the final product is delivered. Because she used a credit card, Daphne could have disputed the transaction if the delivery was not correct or if the item arrived damaged. If the item arrived on time, and in the condition she expected, Daphne can confidently record that the sale on the delivery day, which was the same day.