You make a huge sale to a client worth $1M. It is December 31st, the...
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Accounting
You make a huge sale to a client worth $1M. It is December 31st, the last day of your accounting calendar. The client explains that they do not currently have room in their warehouse for the shipment but you are free to bill them today (therefore recognizing the revenue in the current year) and you can simply ship the merchandise to them in two weeks to allow them to make room in their warehouse (this means ownership of the merchandise has not transferred to the customer). Are you able to recognize this revenue in the current year? Why or why not? Give a thorough and thought out explanation.
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