On June 30, a printing shop provides $1000 of services to a customer to custom print restaurant menus. The customer is sent a bill on July 5 for the amount due. A check in the amount of $1000 is received from the customer on July 25. The printing shop follows GAAP and applies the revenue recognition principle. When is the $1000 sale recognized?
On June 30, a printing shop provides $1000 of services to a customer to custom print restaurant menus. The customer is sent a bill on July 5 for the amount due. A check in the amount of $1000 is received from the customer on July 25. The printing shop follows GAAP and applies the revenue recognition principle. When is the $1000 sale recognized?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 30, a printing shop provides $1000 of services to a customer to custom print restaurant menus. The customer is sent a bill on July 5 for the amount due. A check in the amount of $1000 is received from the customer on July 25. The printing shop follows GAAP and applies the revenue recognition principle. When is the $1000 sale recognized?
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