2 On November 5, Auburn Plumbing Company received a phone call from a customer needing a new hot waterheater, and scheduled a service visit for November 7. On November 7, the company installed the new hot waterheater for the customer (provided the service). On December 10, the customer paid for the service. Under theaccrual-basis of accounting, on which date should the company record service revenue?Multiple ChoiceEvenly over the three datesDecember 10O November 7November 5

Under accrual accounting , revenue is recognized when its earned. Its earned when the service is…

bing Company received a phone call from a customer nee e visit for November 7. On November 7, the company insta ded the service). On December 10, the customer paid for t which date should the company record service revenue?

bing Company received a phone call from a customer nee e visit for November 7. On November 7, the company insta ded the service). On December 10, the customer paid for t which date should the company record service revenue?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

On November 5, Auburn Plumbing Company received a phone call from a customer needing a new hot water
heater, and scheduled a service visit for November 7. On November 7, the company installed the new hot water
heater for the customer (provided the service). On December 10, the customer paid for the service. Under the
accrual-basis of accounting, on which date should the company record service revenue?
Multiple Choice
Evenly over the three dates
December 10
O November 7
November 5

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