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On January​ 1, 2019, a customer places an order for a new customized vehicle. The contract price is $33,000. The vehicle is delivered to the dealer and customer on April​ 1, 2019. What amount of revenue does the dealer record on January​ 1, 2019 and April​ 1, 2019?

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1 vote

Answer:

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Step-by-step explanation:

User Roman Petrenko
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Answer:

On January 1, 2019 the company cannot record any revenue ($0), it should record the $33,000 in revenue on April 1.

Step-by-step explanation:

The revenue recognition principles state that revenue should only be recorded when the company has substantially completed the earning process. This is one of the most important accounting principles since accountants must be very careful to not overstate possible revenue.

User Aristea
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