Question: QUESTION 1 (7 mark practise question) Crunch Craft , a catering company, provides catering services to its customers. Customers normally pay for catering services after

QUESTION 1 (7 mark practise question)

Crunch Craft, a catering company, provides catering services to its customers. Customers normally pay for catering services after the service has been provided. In January 2022, Crunch Craft provided catering services worth $30,000 which it will receive in cash in February 2022. A senior accountant at Crunch Craftwants to record the $30,000 as an asset in the companys Balance Sheet at the end of January 2022.

Required:

Should the $30,000 be recorded as an asset in the companys Balance Sheet at the end of January 2022? Explain, using the definition and recognition criteria of an asset in your explanation.

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