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welcome to your free video lesson from teach you comp incorporated be sure to check out your exclusive discount offer at the end of your free lesson when a customer makes a purchase even when on credit the accrual principle dictates that the revenue is to be recorded in the accounting period when the purchase was made most companies extend some amount of credit through invoicing when a customer agrees to pay for received goods or services at a later point in time they are often sent an invoice that they have to pay by the date specified this date is usually either 30 60 or 90 days from the purchase date when the purchase is made an entry must be made to reflect revenue earned since the company receives no cash at the time of sale it will instead attribute the amount of the sale to an asset account called accounts receivable once the customer remits payment the amount of the payment is then removed from the accounts receivable account and attributed to the cash or checking account for e