Explain why mr armstrong is incorrect

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Problem 1: Mr. Armstrong is the president of Galaxy Co., a private company. He has come to you, Galaxy Co. controller, because he doesn't understand why you did not record a large order shipment of goods from the Galaxy Co. warehouse that occurred on January 5, 2021, in fiscal 2020. Mr. Armstrong is of the view that the revenue from the order should be included in fiscal 2020, since the order was shipped almost immediately after December 31, 2020 yearend, and because Galaxy Co. spent a large portion of fiscal 2020 working to fulfill this one-time shipment. Using the revenue recognition criteria, explain why Mr. Armstrong is incorrect.

Reference no: EM132739579

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