Question

On June 1st, Lucy & Bros received an order for 500 cupcakes. Lucy delivered the cupcakes to the client on June 25th. A $50 deposit was received on June 5th and the remaining $450 was paid on June 30th. Lucy likely would recognize revenue on?

Answer 1

Answer:

The revenue will be recognized on the June 25th

Step-by-step explanation:

Data provided in the question:

Date on which the order for 500 cupcakes was received is June 1st

Date on which the order for 500 cupcakes was delivered is June 25th

Date on which the deposit of $50 was received is June 5th

Date on which the remaining $450 was received is June 30th

Now,

Revenue is always recognized as and when revenue generated and order completes.

Therefore,

In the given question, the order was delivered on June 25th

Hence,

The revenue will be recognized on the June 25th