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Would you recommend that Accountants wait until collections are made from customers before recording Sales Revenue? or Charge it to expense Account?

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Question added by Edgar Mejia , School Head , DepEd Sorsogon
Date Posted: 2014/05/28
Md. Nurujjaman
by Md. Nurujjaman , Finance and Admin Manager , Zaman Enterprise

if sales revenue earned, then it should be record. I recommend that Accountants should not wait until collections are made from customers before recording Sales Revenue. Charge it to expense is other process of recordin that is not effective to revenue recording.

Deleted user
by Deleted user

I recommend accountant should record revenues and not wait. Usually, logistical time does not coincide with actual time. For instance, that happens when a customer pays by post-dated cheque but in the cash flow account is the way of looking at business' available cash.  

Usman Shahid
by Usman Shahid , Assistant Accountant , Furniture Kingdom

Accountant Shouldn't Wait and record the Entry as per the requirement. Either as Accounts Recievable.

Deleted user
by Deleted user

Accountant Should not wait. He has to record entry in the book.

Muhammad Junaid
by Muhammad Junaid , Manager - Finance , Habib Asset Management Limited

As per Accounting Standard "Revenue Recognition" when risk and reward transfer you can charged in as a income.

Moaz Hilal
by Moaz Hilal , Head – Budgeting & Financial Reporting , King Faisal Specialist Hospital & Research Center Gen. Org

I recommend accountant should record revenues and not wait for the collection to happen.

MUHAMMAD ASIF
by MUHAMMAD ASIF , ASSISTANT MANAGER ACCOUNTS , S.ABDULLAH AND COMPANY

ACCOUNTANT Should not wait and make the entry at the time of delivery of goods.

Amit Saxena
by Amit Saxena , Manager , Rajneesh Srivastava and Company, Chartered Accountant Audit Firm

As per Accounting Standards, Revenue should be booked when Goods or Services are Delivered to Third Party. Waiting for Comments on this..

Fatoumata Jarjusey
by Fatoumata Jarjusey , Tax Audit Officer , Gambia Revenue Authority

for tax purposes, accountants should record sales even if the amounts were not collected from customers. If defaults happen as some feared, the amounts can be after pursuation be recorded as a bad-debt or do a provision.

Mohsin Ali
by Mohsin Ali , Accounts Executive , Oasis Packaging Industries (Pvt) Limited.

I recommend that Accountant should'nt wait for revenue collection from Customers & charge them to expense account.

Syed Hassan Raza
by Syed Hassan Raza , Operations Executive Logistics , Sharaf Shipping Agency

May be we have to consider realisation concept first

goods or services are provided for the buyer;the buyer accepts liability to pay for the goods or services;the monetary value of the goods or services has been established;the buyer will be in a situation to be able to pay for the goods or services.

it is only when you can be reasonably certain as to how much will be received thatyou can recognise profits or gains.

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