Question

A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be earned?

a. December 5
b. December 10
c. November 30
d. December 1

Answer 1

November 30

Step-by-step explanation:

it's hard for me to explain it but basically sales are made whether the company receives the money or not