Question

Read each December 2019 scenario below and indicate if Sam's Sporting Goods should recognize revenue, expense, or neither during December. Revenue Expense Neither a) Sam's Sporting Goods had apparel sales totaling $18,000 in December. b) On December 20, Sam's Sporting Goods sold sports equipment totaling $6,000 to a customer who agreed to pay Sam's Sporting Goods in January c) On December 5, Sam's Sporting Goods spent $13,000 cash to purchase new equipment. Sam's Sporting Goods paid $1,500 for an advertisement that appeared in The New York Times on December 28. e) Sam's Sporting Goods received its December water bill and plans to pay the bill in January. f) Sam's Sporting Goods received a $10,000 pre-order from a customer for athletic apparel to be delivered in 2020. On December 26, Sam's Sporting Goods hired an electrician to fix a broken light fixture. The electrician charged $120 and sent Sam's Sporting Goods a bill. h) Sam's Sporting Goods paid $2,000 for December rent. i) Sam's Sporting Goods used $250 of office supplies during December. j) On December 9, Sam's Sporting Goods purchased $1,000 of office supplies.

Answer 1

a) Apparel sales total 18000 dollars- Revenue

b) Sale of sports equipment in December of 6000 doller - Revenue

c) On 5 Dec spent 13000 dollars cash to purchase new sports equipment- Neither

d) Paid 15000 dollars for an advertisement - Expense

e) Received it's Dec water bill and plan to pay in Jan - Expense

f) Advance received from a customer to deliver athletic apparel- Revenue

g) Electrician fee of 120 doller - Expense

h) Paid 2000 doller for Dec rent - Expense

I) Used 250 doller of office supplies - Neither

j) Purchased 1000 doller of office supplies- Neither