Question

On January 15, 2014, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery date of March 1. The equipment was not delivered until March 31. The contract required full payment of $75,000 30 days after delivery. This contract should bea. recorded on April 30, 2014.b. recorded on March 31, 2014.c. recorded on January 15, 2014.d. recorded on March 1, 2014.

Answer 1

d. recorded on March 1, 2014.

Step-by-step explanation:

The contract is not recorded until parties perform the contract terms.

The company delivers the goods (thus complete the performance obligation) on March 31thIs at this date that the company should recognize the earnings from the contract with ABC Carpet Company