·-) cla secure l https:/ Ch. 5 Assessment Help Seve & Exit Submit 3 Consider the
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·-) cla secure l https:/ Ch. 5 Assessment Help Seve & Exit Submit 3 Consider the following three scenarios LABC Lawncare performed lawn maintenance services for Drake Inc on Ame 1st and re-mtpe-t of $500 for those services Il On June 1st, Melly Corp received payment for 100 pounds of raw material to be delivered oDralie inc. in 6 months N. Lodo, LLC collected cash on June 1st for services rendered on May 1st Given these scenarios, revenue cennot be recognized on June 1st sor Multiple Choice only I enly O Type here to searchExplanation / Answer
1) Since the services were performed on Jne 1, revenue can be recognised on June 1
2) Revenue cannot be recognised as the payment is received but the goods delivery will happen after 6 months. The payment received can be accounted as advance from customer or unearned revenue
3) Revenue is recognised on the day of performance of services irrespective of payment date. hence revenue should be recognised on May 1
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