A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on September 1. The customer received the

Question

4 years ago

11

A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on September 1. The customer received the

bill on September 13 and mailed a $5,000 check on September 30. Discount Paper Supply received the check on October 4. On which of the following dates should Discount Paper Supply record sales revenue?
A. September 1
B. September 13
C. September 30
D. October 4

Business

1 answer:

AVprozaik [17] · Answer 1 · 2022-02-04T08:06:50+03:00

Answer:

A

Explanation:

Sales revenue are recorded when the risks and reward are transferred to the buyer.

The key factors to determine a complete sales arrangement are price , evidence of sales agreement and delivery to the buyer.

In the given scenario of discount paper , the price of $5000 has been determined and delivered to the customer.

The customer did not object to the transaction , which mean acceptance.

Therefore the sales revenue should be recorded on the date of dispatch which is September 1