Revenue Recognition Each of the following situations relates to the recognition of revenue:

a. A store sells a gift card in December that will be given as a Christmas present. The card is not redeemed until January.

b. A furniture store sells and delivers furniture to a customer in June with no payments and no interest for six months.

c. An airline sells an airline ticket and collects the fare in February for a flight in March to a spring break destination.

d. A theme park sells a season pass that allows entrance into the park for an entire year, collecting the cash in January.

e. A package delivery service delivers a package in October but doesn't bill the customer and receive payment until November.
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For each situation, indicate when the company should recognize revenue.
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