Glass Corporation sold merchandise to a customer for $30,000 on credit on July 15. The customer paid Glass the amount due on July 31. Under the accrual basis of accounting, how should Glass record the transaction?
A) Glass should recognize the revenue on July 31.
B) The July 15th transaction increases revenue, but has no effect on assets because cash has not been received.
C) Revenue is recognized after the cost of the merchandise sold has been paid by Glass Corporation
D) Revenue is recognized on July 15. The July 31st transaction has no effect on total assets under the accrual basis.
D
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