Question

A doctor for the Benson Family Practice performs a sports physical exam for Allison Smythe on February 1. The charge for the exam is​ $100; Smythe's insurance​ company, Cardinal​ Health, is billed for the entire​ $100 on February 1. Cardinal Health receives the invoice on February​ 2, and enters the amount into its payment system on February 4. Benson Family Practice receives the​ $100 payment from Cardinal Health on February 20. On which date would Benson Family Practice recognize the revenue for the​ Smythe's physical?

Answer 1

On February 1st

Step-by-step explanation:

The revenue is recognize in accounting when generated. Regardless of the payment date. This means, when the revenue is real and earned.

The services were perform and billed on february 1st. This is ground to recognize revenue.

This will be a case of Accrued revenue

Accrued revenue The cash receipts occurs after the billing and recognition of the revenue.