1.A clothing store sells goods to customers who use the store's proprietary (captive) credit card. The store estimates that 2% of the clothes will be returned.

2.A franchiser sells franchisees product and provides accounting services on a monthly basis.

3.A company lists products of other companies on its website and receives a commission equal to a percentage of the selling price when the goods are sold.

4.A health club charges an upfront fee to join. Customers are entitled to use the club for one year.

5.A customer purchases a copy machine whose purchase price includes an agreement under which the seller will provide monthly service of the machine for two years at no additional cost.

Match Answers to questions:

*Revenue is recognized for the sales price less anticipated returns.

*Revenue is recognized ratably over the year even though customers pay up front.

*Revenue is recognized for the commission only, not the full sales price.

*Product sales recognized as revenue on product delivery. Accounting services recognized as revenue on monthly basis.

*Revenue immediately recognized on value of copier. Service agreement, revenue deferred & recognized over 2 years.