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Question: A company has purchased raw materials and has sold the materials as a finished product. However, the company has yet to be invoiced for the raw materials. Using the matching principle, assuming the income from the finished goods has been recognized in the current period, which of the following is an appropriate way to record the transaction?
a. In the current period, book a liability for the material expense and an accrual to the supplier
b. Wait until the period in which the invoice is received, and then book an accrual for the material expense and a liability to the supplier
c. Wait until the period in which the invoice is received, and then book a liability for the material expense and an accrual to the supplier
d. In the current period, book an accrual for the material expense and a liability to the supplier
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