Soft wipe Inc. produces cleaning wipes that are used for a variety of industrial purposes and has
Question:
Soft wipe Inc. produces cleaning wipes that are used for a variety of industrial purposes and has a December 31 year-end. On January 15, after having difficulty in finding quality suppliers, one customer ordered a two-year supply of cleaning wipes. The customer does not currently have the space to properly store the cleaning wipes. The customer paid upfront for their purchases on February 1 and requested the product be held until April 30. On February 1, Soft wipe moved the customer's cleaning wipes to a separate storage space, and the product cannot be sold to another customer. The product is packaged and labelled for shipping. What is the earliest that Soft wipe can recognize revenue in the transaction?
A. February 1
B. April 30
C. January 15
D. December 31
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts