Homework Answers
If best buy is using accrual basis of accounting, it will record revenue from sale, at the time of sale. Under the accrual basis of accounting, revenue is assumed to be earned when goods are sold or services are provided, it does not matter, when actual cash is received.
Third option is the correct option.
If best buy had been using cash basis of accounting, it would have recorded revenue from sale at the time when cash is received.
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