Your client, Daze who uses the accrual basis of accounting, had a payment dispute with his...

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Your client, Daze who uses the accrual basis of accounting, had a payment dispute with his customer, Katie, over $5,000 during 20x1. At trial, the district court granted Daze a right of payment, $5,000 in December, 20x1. Without paying the ordered amount, Katie appealed to the appellate court in January 20x2. Thanks to a successful oral argument before the penal judges, the appellate court reversed the district court's decision and ruled that Katie has no obligation to pay Daze. What is Daze's accounting treatment on $5,000 in 20x1 and 20x2? Your client, Daze who uses the accrual basis of accounting, had a payment dispute with his customer, Katie, over $5,000 during 20x1. At trial, the district court granted Daze a right of payment, $5,000 in December, 20x1. Without paying the ordered amount, Katie appealed to the appellate court in January 20x2. Thanks to a successful oral argument before the penal judges, the appellate court reversed the district court's decision and ruled that Katie has no obligation to pay Daze. What is Daze's accounting treatment on $5,000 in 20x1 and 20x2?

Answer rating: 100% (QA)

Under the accrual basis of accounting Daze should recognize the 5000 as revenue in the period in whi... View the full answer