Hi,
can someone help me with this excercise.
It has do be done based with the Revenue Recognition( Accrual basis of accounting)
On Dec. 22nd, 2018 a client enters a supermarket for electronic equipment and orders a flat screen television at a price of € 3.000. The television is delivered at the client’s home on Dec. 23rd, 2018. For some reason the bill is sent to the client on Jan 2nd, but arrives only on Jan. 8th, 2019 at the clients home. He pays the bill on February 1st, 2019. The purchase price of the flat screen for the supermarket was € 2.000.
• How is this transaction reflected in the supermarket’s financial statements in 2018 and 2019?
• When does the supermarket realize a profit?
can someone help me with this excercise.
It has do be done based with the Revenue Recognition( Accrual basis of accounting)
On Dec. 22nd, 2018 a client enters a supermarket for electronic equipment and orders a flat screen television at a price of € 3.000. The television is delivered at the client’s home on Dec. 23rd, 2018. For some reason the bill is sent to the client on Jan 2nd, but arrives only on Jan. 8th, 2019 at the clients home. He pays the bill on February 1st, 2019. The purchase price of the flat screen for the supermarket was € 2.000.
• How is this transaction reflected in the supermarket’s financial statements in 2018 and 2019?
• When does the supermarket realize a profit?
