Question

Olathe Industrial Supplies (OIS) is wholesale supplier of cleaning supplies to janitorial service companies. Butler Cleaning (BC) placed an order for 10 mops at a total cost of $50 (55/mop) on June 15th. Because BC is a new customer Ois requires a down payment of 50% of the sales price before the mops can be delivered. On June 17th BC mails a check to OIS for $25. On June 19th OIS receives the check for $25. OIS delivers the mops to 8C on June 22nd. On June 25th BC malls the remaining $25 to 015. On June 28th ois receives the $25 check. On June 29th Ois deposits both checks into their bank account. When should is recognize the revenue related to this sale? June 22nd Half on June 19th and Half on June 28th June 29th June 15th

Answer 1

OIs recognise the revenue related to this sale on

June 22nd

because sale revenue recognition when risk or rewards of pgoods delivery to customer irrespective of payment received or not

So sale is recognised on June 22nd because goods are delivered this date