Problem: Consider the following events for B Company: June 1 Purchased gasoline for $200 on account June 7 Advertised lawn mowing for $100 per lawn June 9 Signed up 8 customers and received $800 in cash June 12 Mowed 8 lawns, using up all the gasoline purchased on June 1 June 13 Paid for the gasoline Under accrual-basis accounting, what is the appropriate day to record the revenues related to lawn services? a) June 1. b) June 7. c) June 9. d) June 12.
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Problem Details
Consider the following events for B Company:
June 1 Purchased gasoline for $200 on account
June 7 Advertised lawn mowing for $100 per lawn
June 9 Signed up 8 customers and received $800 in cash
June 12 Mowed 8 lawns, using up all the gasoline purchased on June 1
June 13 Paid for the gasoline
Under accrual-basis accounting, what is the appropriate day to record the revenues related to lawn services?
a) June 1.
b) June 7.
c) June 9.
d) June 12.
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