Question

The Canon Corporation sells ten copiers to the Title Company on October 15 for $40,000. Canon delivers the copiers to Title on October 20 and Title pays $16,000, agreeing to pay the balance on November 10. Under the cash basis, how much revenue should Canon recognize in October

Answer 1

$16,000

Step-by-step explanation:

Under the cash basis, the revenue is recognized when the cash is received and the expenses is recognized when the cash is paid

So according to the question since the $16,000 is paid so the revenue that should be recognized in the October month is $16,000

Therefore the same would be considered