Question: Say an entity A has a check to another entity B for $500 on December 31, Year 1. But the check is mailed out to

Say an entity A has a check to another entity B for $500 on December 31, Year 1.

But the check is mailed out to the entity B until January 1 or January 2.

Should the entity A record that $500 as cash on the balance sheet? Or as something else?

If so, why?

Please explain.

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