LFAWG / not yet
Income is never recognized until two things occur
Event 1. Payment has been received from the customer
Event 2. The good or service has been accepted by the customer.
Event 1. and to Event 2. togehter create revenue items on the income statement.
Event 1. with no Event 2. results in Deferred revenue on the balcance sheet
Event 2. and no Event 1. results in Accouts Receivable on the balance sheet.
and you wrote
And when looking at the finanial, at the end of a quarter, you can't add sales from the income statement and A/R from the balance sheet to determine the sales for that quarter.
Once again, "Sales" is not an accouting item on Wave's books.
To get to sales as a business concept, add
Revenues for the Q
Change Q over Q in Accounts Receivable
Change Q over Q in Deferred Revenue.
I'm done for this topic, thanks.
