Question

Pedro agreed to repair a house for a client and started to work on December 30, 2016. On January 2, 2018, he completed the job and received payment from the client. Pedro must record the income in:

Answer 1

The income should be recorded in 2018 when the income is received by Pedro.

Step-by-step explanation:

Revenue ought to be get recorded when the entire business has managed to earn the income. This is a key idea in the collection premise of bookkeeping since income can be recorded without really being gotten. Incomes are acknowledged or feasible when an organization trades products or administrations for money or different resources.

Since in the question above, the income was received in the year 2018 even though the work was done in the year 2016, the person will not get his income in 2016. He will record his income in 2018.