Question

Harry & Co purchased books in July.
The books were sold to customers in
August. Harry & Co received the final cash
payments in September. According to the
revenue-recognition principle, when should
revenue be recorded?​

Answer 1

Answer:

Revenue will be recorded in August as this principle States that the revenue should be recorded atthe time itis earned not at the time payment/cash is received.

Answer 2

Revenue shall be recognised in the month of August since revenues are recognised when earned, and not necessarily when received

Explanation:

Revenues received from the activities of a company should be recorded in the general ledger, and then each "accounting (income) period "recorded" on an income statement. The following two conditions must be met, in compliance with commonly accepted "accounting principles" before the company record revenue on its books

• Transaction process must be initiated through a crucial event.
• Under a certain "degree of reliability" the money coming from the transaction should be determined. T he purchaser of the goods of a business should remit funds for said items that match the specified price tag.
• Revenue is recognised when "earned", not always when received  
• Revenues are also obtained & collected in a "single transaction", for example, of a customer making a "retail purchase in-store".

To know more

Explain revenue recognition criteria and matching of revenues and ...

https://brainly.in/question/10959817