Assuming that Sooner Company uses cash-basis accounting, when would the company

Question

Assuming that Sooner Company uses cash-basis accounting, when would the company record the expense related to the supplies?

is the answer may 2, may 8, may 15, may 20
which one explain

The following information pertains to Sooner Company: May 1 Customer ordered an installation service to be done by Sooner Company on May 15. May 2 Customer paid cash for the installation job to be done on May 1 5. May 8 The Sooner Company purchased installation supplies on account for the job. May 15 The installation job was started and completed. May 20 Amount owed for supplies purchased on May 8 is paid. Assuming that Sooner Company uses cash-basis accounting, when would the company record the expense related to the supplies? is the answer may 2, may 8, may 15, may 20 which one explain

Explanation / Answer

the company would record the expense related to the supplies on May 20.
In cash-basis accounting, companies record expenses in financial accounts when the cash is actually paid out.

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