A Customer Purchased and Received $5,000 of Goods on Credit

question 1

Multiple Choice

A customer purchased and received $5,000 of goods on credit from Discount Paper Supply on September 1.The customer received the bill on September 13 and mailed a $5,000 check on September 30.Discount Paper Supply received the check on October 4.On which of the following dates should Discount Paper Supply record sales revenue?

• A)September 1
• B)September 13
• C)September 30
• D)October 4

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Definitions:

Personally Liable

A legal term referring to an individual's responsibility to settle a debt or legal judgment from their personal assets.

Corporate Bonds

Debt securities issued by corporations to finance their operations, which typically pay periodic interest payments and return the principal at maturity.

Common Stock

A security that evidences ownership in a corporation. A share of common stock gives the owner a proportionate interest in the corporation with regard to control, earnings, and net assets. Common stock is lowest in priority with respect to payment of dividends and distribution of the corporation’s assets on dissolution.

Proportionate Interest

The share or percentage ownership that an individual or entity holds in a particular asset, reflecting their portion of the total value or earnings.