The Following Information Pertains to Sooner Company:
May 1 $\quad$ Customer Ordered an Installation Service to Be Done by Sooner

question 1

Multiple Choice

The following information pertains to Sooner Company:
May 1 $\quad$ Customer ordered an installation service to be done by Sooner Company on May 15.
May 2 $\quad$ Customer paid cash for the installation job to be done on May 15.
May 8 $\quad$ The Sooner Company purchased installation supplies on account for the job.
May 15 $\quad$ The installation job was started and completed.
May 20 $\quad$ Amount owed for supplies purchased on May 8 is paid.
Assuming that Sooner Company uses accrual-basis accounting,when would the company record the expense related to the supplies?

• A)May 2.
• B)May 8.
• C)May 15.
• D)May 20.

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Definitions:

Collateral

Property or assets that a borrower offers to a lender to secure a loan.

Guarantor

is an individual or entity that agrees to be responsible for another's debt or performance under a contract, if the original party fails to meet their obligations.

Principal Debtor

The main individual or entity obligated to repay a debt or loan in the terms of a financial agreement.

Principal Debtor

The main individual or entity legally obligated to repay a debt or loan in accordance with the terms of the agreement.