This month, a company receives $6,000 from a regular customer, of which $4,000 is for products delivered last month and $2,000 is for products that will be delivered next month. How much revenue should the company record for this month?

This month, a company receives $6,000 from a regular customer, of which $4,000 is for products delivered last month and $2,000 is for products that will be delivered next month. How much revenue should the company record for this month?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 3Q: On January 1, a flower shop contracts with customers to provide flowers for their wedding on June 2....

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Under the accrual basis of accounting, the revenue recognition principle of accounting states that the revenue should be recorded once the service or related goods have been provided/ delivered.

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