Accrual vs Good In transit

Tracy1265

Hello
If services or goods have been provided but not invoiced in the current period do you
a) accrue for the Income (will be invoiced next period)
b) deal the deliveries as good in transit and amend the stock evaluation (goods have been delivered and signed for up to 2 weeks ago)

My knowledge and experience points me to a) but i'm being told b)

Are we both right?

reader

I would accrue the sale

Ideally, you want to match the sale with the cost of the original purchase

So I wouldn't include the goods in the closing stock figure

That way the price of the goods would be in cost of goods sold

And I would accrue the sale so that the purchase and sale are declared in the same period

This should then enable accounts to be produced with the correct gross profit margin/mark-up