Makoto Auto Parts sells new parts for foreign automobiles to auto dealers.i (Click the icon to view additional information.)For late August and early September, shipping documents are billed on sales invoices asfollows:(Click the icon to view the list of sales invoices on which the shipping documents werebilled.)The August and September sales journals have the following information included:(Click the icon to view the information included in the August and September salesjournals.)Read the requirements.Requirement a. What are the accounting requirements for a correct sales cutoff?O A. A shipment should be recorded as a sale when control has been transferred to the buyer and collectability is reasonably assured.O B. A shipment should be recorded as a sale when the merchandise is received by the purchaser.O C. A shipment should be recorded as a sale when the payment for the merchandise has been received by the seller.O D. A shipment should be recorded as a sale when the merchandise is shipped.

In simple words sale should be recorded at the point when the ownership of the goods transferred to…

Requirement a. What are the accounting requirements for a correct sales cutoff? O A. A shipment should be recorded as a sale when control has been transferred to the buyer and collectability is reasonably assured. O B. A shipment should be recorded as a sale when the merchandise is received by the purchaser. O C. A shipment should be recorded as a sale when the payment for the merchandise has been received by the seller. OD. A shipment should be recorded as a sale when the merchandise is shipped.

Requirement a. What are the accounting requirements for a correct sales cutoff? O A. A shipment should be recorded as a sale when control has been transferred to the buyer and collectability is reasonably assured. O B. A shipment should be recorded as a sale when the merchandise is received by the purchaser. O C. A shipment should be recorded as a sale when the payment for the merchandise has been received by the seller. OD. A shipment should be recorded as a sale when the merchandise is shipped.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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