O'Reilly logo

Accounting At Your Fingertips, 2e by George Murray, CPA.

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

4.1 Recording Sales

Timing of Sales

Recording Cash Sales

Recording Credit Sales

How and when can you record a sale? This subchapter answers that question and explains how to handle exceptions.

Timing of Sales

Under accounting’s accrual basis, sales revenue is recognized and can be legitimately recorded on the books in the period in which it is earned. For service businesses, this typically means when the services have been performed. For a manufacturing or merchandising business, sales occur when goods have been handed over or shipped to the customer in return for cash or the promise of cash in the future (a receivable). This is known as the revenue recognition principle.

The revenue recognition principle holds that sales revenue should be ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required