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I am Lyosha [343]
3 years ago
9

Completed plans for guest house, pool and spa for a client. The $5700 fee for this project was billed to the client in May but w

ill not be collected until June 25. What is revenue realized?
Social Studies
1 answer:
frosja888 [35]3 years ago
3 0

Answer:

According to the revenue recognition principle of accounting, revenues are realized (and recognized in the accounting journals) when goods and/or services are delivered.

In this case, the service: completing plans for guest house, pool, and spa, was delivered in May, therefore, the revenue (accrued revenue) has been realized in may even if the cash will only be collected until June 25.

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