On February 1, Domino Corporation ordered inventory. The inventory was received on February 15. Domino paid for the inventory on February 27. On which of the following dates will Domino record a transaction? (Select all that apply)

Question

Business

Mona

11 April, 04:17

On February 1, Domino Corporation ordered inventory. The inventory was received on February 15. Domino paid for the inventory on February 27. On which of the following dates will Domino record a transaction? (Select all that apply)

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Answers (1)

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Arianna Glass · Answer 1

February 15 and February 27

Explanation:

Domino corporation would recognize an inflow of the inventory they ordered (which increases their inventory) when it arrives. Since they have gotten/received the materials, it would be recorded on the day the material was received which is on the 15th of February.

They would also need to record their outflow of cash which they used to pay for the inventory on the 27th of February since it was on that day the cash left their business and they actually paid for the products.