The Following Information Pertains to Sooner Company: Assuming That Sooner

question 114

Multiple Choice

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

• A)May 2.
• B)May 8.
• C)May 15.

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