On july 25, henry company's accountant prepared a check for august's rent payment. henry company mails the checkon july 27 to the landlord. the landlord receives the check on july 31 and cashes the check on august 2. when should henry company record the rent expense associated with this transac±on?

Question

Business

Shyanne Rivera

29 July, 01:56

On july 25, henry company's accountant prepared a check for august's rent payment. henry company mails the checkon july 27 to the landlord. the landlord receives the check on july 31 and cashes the check on august 2. when should henry company record the rent expense associated with this transac±on?

+1

Answers (1)

Know the Answer?

Davon Mahoney · Answer 1

Henry Company should record the rent expense on August 2. Although the check was prepared on July 25 and mailed on July 27, it should not be recorded until the check is actually cashed.