2. Application Fees, Discounts and Customer Loyalty Programs The travel agency Easytravel, established on 07/01/2010, sold, on 09/01/2010 to an enterprise committee, a group trip to China departing on 01/15/2011 with the following conditions:

The application fees of €500 must be paid cash on the date of order.

25% of the total price needs to be paid up front on the date of order.

The total price of the trip is €80,000; the payment of the balance (75%) is subject to the following conditions: 2/15, n/30 (i.e. 2% discount if paid within 15 days, or €80,000 must be paid within 30 days) from the date of departure onwards.

The customer loyalty program of the travel agency enables customers to get a 10%

discount of the actual trip price on the next journey bought within one year.

The enterprise committee decides to pay 30 days after the departure date.

1. What is Easytravel’s sale figure concerning this trip for FY2010? And for FY2011?

2. What is the impact of the sale conditions (application fee, discounts and customer loyalty program) on the recognition of Easytravel’s sales?