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Calmar Corporation sold merchandise to a customer for $30,000 on credit on July 15. The customer paid Calmar the amount due on July 31. Under accrual accounting, how should Calmar record the transaction? The company will recognize the revenue on July 31. The July 15 transaction increases revenue but has no effect on assets because cash has not been received. The July 31 transaction has no effect on total assets under the accrual basis. Revenue is recognized after the cost of the merchandise sold has been paid by Calmar

Calmar Corporation sold merchandise to a customer for $30,000 on credit on July 15. The customer paid Calmar the amount due on July 31. Under accrual accounting, how should Calmar record the transaction? The company will recognize the revenue on July 31. The July 15 transaction increases revenue but has no effect on assets because cash has not been received. The July 31 transaction has no effect on total assets under the accrual basis. Revenue is recognized after the cost of the merchandise sold has been paid by Calmar

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter7: Accounting Information Systems
Section: Chapter Questions
Problem 12MC: On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received...
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Calmar Corporation sold merchandise to a customer for $30,000 on credit on July 15. The customer paid Calmar the amount due on July 31. Under accrual accounting, how should Calmar record the transaction?

The company will recognize the revenue on July 31.

The July 15 transaction increases revenue but has no effect on assets because cash has not been received.

The July 31 transaction has no effect on total assets under the accrual basis.

Revenue is recognized after the cost of the merchandise sold has been paid by Calmar.

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