Revenue Recognition and Expense Recognition Video Lessons

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Problem: The following information pertains to Sooner Company: May 1     Customer ordered an installation service to be performed on May 15 May 2     Customer paid cash for the installation May 8     Sooner purchased the necessary supplies on account to complete the installation May 15   Installation was started and completed May 20   Sooner paid for the supplies When would the company record the expense related to the supplies? a) May 2. b) May 8. c) May 15. d) May 20.

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Problem Details

The following information pertains to Sooner Company:

May 1     Customer ordered an installation service to be performed on May 15
May 2     Customer paid cash for the installation
May 8     Sooner purchased the necessary supplies on account to complete the installation
May 15   Installation was started and completed
May 20   Sooner paid for the supplies

When would the company record the expense related to the supplies?

a) May 2.

b) May 8.

c) May 15.

d) May 20.

Frequently Asked Questions

What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Revenue Recognition and Expense Recognition concept. You can view video lessons to learn Revenue Recognition and Expense Recognition. Or if you need more Revenue Recognition and Expense Recognition practice, you can also practice Revenue Recognition and Expense Recognition practice problems.

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Our tutors rated the difficulty ofThe following information pertains to Sooner Company: May 1...as low difficulty.