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gladu [14]
3 years ago
12

On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract s

pecifies a delivery date of March 1. The equipment was delivered on March 31. The contract requires full payment of $75,000 30 days after delivery. The revenue for this contract should be recorded on
Business
1 answer:
ArbitrLikvidat [17]3 years ago
3 0

Answer:

31 March 2021

Explanation:

The contract should be recorded on 31 March 2021 because according to the US Generally Accepted Accounting Principles, revenue should be recognize in the book only when service has been rendered to the customer, the selling price of product is fixed and confirmation of service arrangement and amount to be collected.

With regards to the above scenario, since the equipment was not delivered until 31 March, then 31 of March will be recognized.

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Read 2 more answers
Select the correct answer.
sweet-ann [11.9K]

Answer:

Principal

Explanation:

A loan can be defined as the lending of money, property, etc by one party to another party. A loan is more often than not given out by financial institutions.

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