On December 15, Year 1, Yu Bakery receives an order from a customer for services to be performed on December 28, Year 1. Due to a backlog of orders, the company does not perform the services until January 3, Year 2. The customer pays for the services on January 16, Year 2. The revenue recognition principle requires the revenue to be recorded by the company on: Select one: A. December 15, Year 1 B. January 3, Year 2 C. December 28, Year 1 D. January 16, Year 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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am. 81.

On December 15, Year 1, Yu Bakery receives an order from a customer for services to be performed on December 28, Year 1. Due to a backlog of
orders, the company does not perform the services until January 3, Year 2. The customer pays for the services on January 16, Year 2.
The revenue recognition principle requires the revenue to be recorded by the company on:
Select one:
A. December 15, Year 1
B. January 3, Year 2
C. December 28, Year 1
D. January 16, Year 2
Transcribed Image Text:On December 15, Year 1, Yu Bakery receives an order from a customer for services to be performed on December 28, Year 1. Due to a backlog of orders, the company does not perform the services until January 3, Year 2. The customer pays for the services on January 16, Year 2. The revenue recognition principle requires the revenue to be recorded by the company on: Select one: A. December 15, Year 1 B. January 3, Year 2 C. December 28, Year 1 D. January 16, Year 2
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