Faucet Plumbing receives a phone call from a customer needing a new water heater on October and schedules a consultation for a free estimate on November 3. Faucet installs the new water heater on November 5. The customer pays for service on November 15. According to the revenue recognition principle, on which date should Faucet record service revenue?

Faucet Plumbing receives a phone call from a customer needing a new water heater on October and schedules a consultation for a free estimate on November 3. Faucet installs the new water heater on November 5. The customer pays for service on November 15. According to the revenue recognition principle, on which date should Faucet record service revenue?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter18: Acquiring Capital For Growth And Development

Section: Chapter Questions

Problem 1AP

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Faucet Plumbing receives a phone
call from a customer needing a new
water heater on October and
schedules a consultation for a free
estimate on November 3. Faucet
installs the new water heater on
November 5. The customer pays for
service on November 15. According
to the revenue recognition principle,
on which date should Faucet record
service revenue?

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