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You bought a sanding machine from the local hardware store using the credit card of the store chain ...

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You bought a sanding machine from the local hardware store using the credit card of the store chain ...

You bought a sanding machine from the local hardware store using the credit card of the store chain on December 30, 2019 to be delivered on January 10, 2020. When should the sanding machine be recognized on the firm's balance sheet?

▸ when you receive the machine on Jan. 10

▸ when you made the purchase on Dec. 30

▸ when the payment is made to the credit card

▸ when the credit card company makes the payment to the store

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Corporate Finance

Edition: 5^th

Author: Booth

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