Gary Slapstick Promotions Ltd (GSP) acquired the rights to use the names of a number of football players on life-sized stuffed dolls it purchases from a toy manufacturer. The dolls are marketed through mail-order advertisements in the TV-listings inserts of large newspapers. When an order is received (with a money order, cheque or credit card number), GSP contacts the toy manufacturer. The toy manufacturer is responsible for manufacturing and shipping the doll to the lucky boy or girl. GSP is notified at the time of shipment. The customer has the option of returning the doll within two weeks of the day it is received. GSP pays the toy manufacturer within 30 days of delivery. Response to the dolls this Christmas has been overwhelming. In fact, the toy manufacturer is working extra shifts to try and keep up with the demand. 

1. Identify three points in time at which GSP could recognise revenue on the dolls. Which would you recommend? Why? 

2. Identify two different points in time at which the toy manufacturer could recognise revenue on the dolls. 

3. Discuss how GSP should account for its payments to football players for the right to use their names. (Assume that each player is paid a lump sum initially and a royalty on each doll sold that uses his name.)