Wk 5 discussion 8-57

Wk 5 discussion 8-57 - good to count as revenue just yet....

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1) Time the advance billing is made – by using this method you are assuming an amount and then adding the 15% commission which you do not know for sure if the amount is correct. By charging the customer in advance you might end of having to charge them more for the advertisement or owing them a credit in my opinion this method would be the hardest to keep up with and add more work to the accounts. 2) When payment is received from the client-it is nice when a company pays for a service which has not been done yet, but since the work has not been completed and the amounts could change it would not be good to use and not
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Unformatted text preview: good to count as revenue just yet. 3) In the month when the advertising appears in the media this would be a good time to show the revenue but only if both criteria have been met. The only problem is most companies have 30 days to pay a bill so you may not get payment in time. 4) When the bill for advertising is received from the media, generally in the month following its appearance Usually by now you have reached both criterias, advertising and payment and would be the time to show revenue, it would be a month after the services are done but it would be the best option....
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This note was uploaded on 05/29/2011 for the course EC 2011 taught by Professor Johnson during the Spring '11 term at FIT.

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