A local business Hardman Hardware received an order for $40,000 worth of PVC pip

Question

A local business Hardman Hardware received an order for $40,000 worth of PVC pipes on the 7th of July. The pipes were collected by the customer on the 19th of July, and full payments were made on the 3rd of August. Based on this information, which of the following statements is true? Select one: a. Hardman Hardware incurred a $40,000 expense in August b. Hardman Hardware accrued a $40,000 revenue in July c. Hardman Hardware accrued a $40,000 revenue in August d. Hardman Hardware accrued a $40,000 expense in July A local business Hardman Hardware received an order for $40,000 worth of PVC pipes on the 7th of July. The pipes were collected by the customer on the 19th of July, and full payments were made on the 3rd of August. Based on this information, which of the following statements is true? Select one: a. Hardman Hardware incurred a $40,000 expense in August b. Hardman Hardware accrued a $40,000 revenue in July c. Hardman Hardware accrued a $40,000 revenue in August d. Hardman Hardware accrued a $40,000 expense in July A local business Hardman Hardware received an order for $40,000 worth of PVC pipes on the 7th of July. The pipes were collected by the customer on the 19th of July, and full payments were made on the 3rd of August. Based on this information, which of the following statements is true? Select one: a. Hardman Hardware incurred a $40,000 expense in August b. Hardman Hardware accrued a $40,000 revenue in July c. Hardman Hardware accrued a $40,000 revenue in August d. Hardman Hardware accrued a $40,000 expense in July

Explanation / Answer

Answer b. Hardman Hardware accrued a $40,000 revenue in July Since, the goods have been delivered to the customers and bills have been raised to customer, so revenue has been accrued on Jul-19. Journal Entry to be Passed: Particulars Dr. Amt. Cr. Amt. Accounts Receivable    40,000.00    Sales Revenue    40,000.00

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