Identify the date in which Company JP record the service revenue under revenue recognition principle.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 3, Problem 1SSQ

To determine

Identify the date in which Company JP record the service revenue under revenue recognition principle.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (b)

May 7 (date of service)

Explanation of Solution

Revenue recognition principle:

Revenue recognition principle states that every business organization should recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Option (a): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, Company JP will not record the service revenue on May 5. Hence, Option (a) is incorrect answer.

Option (b): According to the revenue recognition principle, the revenue is recognized when it is earned. In this the service is provided on May 7. Thus, Company JP will record the service revenue on May 7. Hence, Option (b) is correct answer.

Option (c): According to the revenue recognition principle, the revenue is recognized when it is earned irrespective of the cash receipts. Thus, Company JP will not record the service revenue on May 10. Hence, Option (c) is incorrect answer.

Option (d): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, the company will record the service revenue only on May 7. Hence, Option (d) is incorrect answer.

As per the above explanation, Option (a), (c), and (d) are incorrect answer. Thus, Option (b) is correct answer.

Conclusion

Therefore, Option (b) May 7 (date of service) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 2

Question

Chapter 3, Problem 1SSQ

To determine

Identify the date in which Company JP record the service revenue under revenue recognition principle.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (b)

May 7 (date of service)

Explanation of Solution

Revenue recognition principle:

Revenue recognition principle states that every business organization should recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Option (a): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, Company JP will not record the service revenue on May 5. Hence, Option (a) is incorrect answer.

Option (b): According to the revenue recognition principle, the revenue is recognized when it is earned. In this the service is provided on May 7. Thus, Company JP will record the service revenue on May 7. Hence, Option (b) is correct answer.

Option (c): According to the revenue recognition principle, the revenue is recognized when it is earned irrespective of the cash receipts. Thus, Company JP will not record the service revenue on May 10. Hence, Option (c) is incorrect answer.

Option (d): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, the company will record the service revenue only on May 7. Hence, Option (d) is incorrect answer.

As per the above explanation, Option (a), (c), and (d) are incorrect answer. Thus, Option (b) is correct answer.

Conclusion

Therefore, Option (b) May 7 (date of service) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 1SSQ

To determine

Identify the date in which Company JP record the service revenue under revenue recognition principle.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (b)

May 7 (date of service)

Explanation of Solution

Revenue recognition principle:

Revenue recognition principle states that every business organization should recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Option (a): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, Company JP will not record the service revenue on May 5. Hence, Option (a) is incorrect answer.

Option (b): According to the revenue recognition principle, the revenue is recognized when it is earned. In this the service is provided on May 7. Thus, Company JP will record the service revenue on May 7. Hence, Option (b) is correct answer.

Option (c): According to the revenue recognition principle, the revenue is recognized when it is earned irrespective of the cash receipts. Thus, Company JP will not record the service revenue on May 10. Hence, Option (c) is incorrect answer.

Option (d): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, the company will record the service revenue only on May 7. Hence, Option (d) is incorrect answer.

As per the above explanation, Option (a), (c), and (d) are incorrect answer. Thus, Option (b) is correct answer.

Conclusion

Therefore, Option (b) May 7 (date of service) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 1SSQ

To determine

Identify the date in which Company JP record the service revenue under revenue recognition principle.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (b)

May 7 (date of service)

Explanation of Solution

Revenue recognition principle:

Revenue recognition principle states that every business organization should recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Option (a): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, Company JP will not record the service revenue on May 5. Hence, Option (a) is incorrect answer.

Option (b): According to the revenue recognition principle, the revenue is recognized when it is earned. In this the service is provided on May 7. Thus, Company JP will record the service revenue on May 7. Hence, Option (b) is correct answer.

Option (c): According to the revenue recognition principle, the revenue is recognized when it is earned irrespective of the cash receipts. Thus, Company JP will not record the service revenue on May 10. Hence, Option (c) is incorrect answer.

Option (d): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, the company will record the service revenue only on May 7. Hence, Option (d) is incorrect answer.

As per the above explanation, Option (a), (c), and (d) are incorrect answer. Thus, Option (b) is correct answer.

Conclusion

Therefore, Option (b) May 7 (date of service) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1SSQ

To determine

Identify the date in which Company JP record the service revenue under revenue recognition principle.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (b)

May 7 (date of service)

Explanation of Solution

Revenue recognition principle:

Revenue recognition principle states that every business organization should recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Option (a): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, Company JP will not record the service revenue on May 5. Hence, Option (a) is incorrect answer.

Option (b): According to the revenue recognition principle, the revenue is recognized when it is earned. In this the service is provided on May 7. Thus, Company JP will record the service revenue on May 7. Hence, Option (b) is correct answer.

Option (c): According to the revenue recognition principle, the revenue is recognized when it is earned irrespective of the cash receipts. Thus, Company JP will not record the service revenue on May 10. Hence, Option (c) is incorrect answer.

Option (d): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, the company will record the service revenue only on May 7. Hence, Option (d) is incorrect answer.

As per the above explanation, Option (a), (c), and (d) are incorrect answer. Thus, Option (b) is correct answer.

Conclusion

Therefore, Option (b) May 7 (date of service) is correct answer.

Answer 6

Chapter 3, Problem 1SSQ

To determine

Identify the date in which Company JP record the service revenue under revenue recognition principle.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (b)

May 7 (date of service)

Explanation of Solution

Revenue recognition principle:

Revenue recognition principle states that every business organization should recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Option (a): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, Company JP will not record the service revenue on May 5. Hence, Option (a) is incorrect answer.

Option (b): According to the revenue recognition principle, the revenue is recognized when it is earned. In this the service is provided on May 7. Thus, Company JP will record the service revenue on May 7. Hence, Option (b) is correct answer.

Option (c): According to the revenue recognition principle, the revenue is recognized when it is earned irrespective of the cash receipts. Thus, Company JP will not record the service revenue on May 10. Hence, Option (c) is incorrect answer.

Option (d): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, the company will record the service revenue only on May 7. Hence, Option (d) is incorrect answer.

As per the above explanation, Option (a), (c), and (d) are incorrect answer. Thus, Option (b) is correct answer.

Conclusion

Therefore, Option (b) May 7 (date of service) is correct answer.

Answer 7

Chapter 3, Problem 1SSQ

To determine

Identify the date in which Company JP record the service revenue under revenue recognition principle.

Answer 8

Expert Solution & Answer

Answer to Problem 1SSQ

Option (b)

May 7 (date of service)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Revenue recognition principle:

Revenue recognition principle states that every business organization should recognize the revenue when it is earned, no matter, cash related to that obligation is received or not.

Option (a): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, Company JP will not record the service revenue on May 5. Hence, Option (a) is incorrect answer.

Option (b): According to the revenue recognition principle, the revenue is recognized when it is earned. In this the service is provided on May 7. Thus, Company JP will record the service revenue on May 7. Hence, Option (b) is correct answer.

Option (c): According to the revenue recognition principle, the revenue is recognized when it is earned irrespective of the cash receipts. Thus, Company JP will not record the service revenue on May 10. Hence, Option (c) is incorrect answer.

Option (d): According to the revenue recognition principle, the revenue is recognized when it is earned. Thus, the company will record the service revenue only on May 7. Hence, Option (d) is incorrect answer.

As per the above explanation, Option (a), (c), and (d) are incorrect answer. Thus, Option (b) is correct answer.