4. [Timing of revenue recognition] Hetlig-Meyers Company is one of the largest furniture retailers in the United States. Until March 1, 2000, like other major retailers, Heilig-Meyers recog- mized revenue upon determination of the availability of merchan- dise, establishment of delivery date. and (when applicable) approval of customer credit.

a. Critique the revenue recognition method used by Heilig- Meyers Company. Your response should include an evalua- tion of whether the method conforms to U.S. GAAP.