A doctor for the Benson Family Practice performs a sports physical exam for Allison Smythe on February 1. The charge for the exam is $100; Smythe's insurance company, Cardinal Health, is billed for the entire $100 on February 1. Cardinal Health receives the invoice on February 2, and enters the amount into its payment system on February 4. Benson Family Practice receives the $100 payment from Cardinal Health on February 20. On which date would Benson Family Practice recognize the revenue for the Smythe's physical?

A. February 2

B. February 4

C. February 20

D. February 1

Question

Business

Maribel Stark

15 April, 20:55

A doctor for the Benson Family Practice performs a sports physical exam for Allison Smythe on February 1. The charge for the exam is $100; Smythe's insurance company, Cardinal Health, is billed for the entire $100 on February 1. Cardinal Health receives the invoice on February 2, and enters the amount into its payment system on February 4. Benson Family Practice receives the $100 payment from Cardinal Health on February 20. On which date would Benson Family Practice recognize the revenue for the Smythe's physical?

A. February 2

B. February 4

C. February 20

D. February 1

+5

Answers (1)

Know the Answer?

Wayne Thomas · Answer 1

The option D is correct

Explanation:

The Doctor must recognize the revenue on first February because the consideration for performing the test is delivered to the party to the contract on February 1. So the revenue must be recognized on that date.