A furniture factory's employees work overtime to finish an order that is sold on December 31. The office sends a statement to the customer in early January and payment is received by mid-February. The overtime wages should be expensed in:
a) Januaryb) Februaryc) The period when the worker receives their checksd) Either Jan or Feb depending on when the pay period end
The overtime wages should be expensed in January because the overtime wage payment should be made from the company account and not base on the customer payment to the company.
