Chapter 3, Problem 3.41Q

Questions 41-43 are based on the following facts: Jenna Newbury began a music business in July 2018 Newbury prepares monthly financial statements and uses the accrual basis of accounting. The following transactions are Newbury Company's only activities dur.ng July through October:

Jul 14	Bought music on account for $65, with payment to the supplier done in 90 days.
Aug 3	Performed a job on account for Atlanta Turner for $55, collectible from her in 30 days. Used up all the purchased on July 14.
Sep16	Collected the $55 receivable from Turner.
Oct 22	Paid the $65 owed to the supplier from the July 14 transaction.

In which month should Newbury record the cost of the music as an expense?

1. a. July
2. b. August
3. c. September
4. d. October