Operating a catering service


The ABC Company operates a catering service specializing in business luncheons for large corporations. ABC requires customers to place their orders 2 weeks in advance of the scheduled events. ABC bills its customers on the tenth day of the month following the date of service and requires that payment be made within 30 days of the billing date. Collections from customers have never been an issue in the past. ABC should recognize revenue from its catering services at the date when a:

a) Customer places an order.

b) Luncheon is served.

c) Billing is mailed.

d) Customer's payment is received.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Operating a catering service
Reference No:- TGS041170

Expected delivery within 24 Hours