A resort sells sex-pack lift ticket in advance of the season opening for $529. Each six-pack gives you 6 lift tickets that can be used for 1 days access to the lift. The following chart indicates how many six packs were sold during the 2021-2022 ski season and what payment the resort had received from customers during the season, and when these passes were used to access the lift. All unused six-pack lift tickets expire at the end of ski season. Assume the resort uses the earning approach for revenue recognition.

Date # six-pack sold Cash received

Oct 21 550 $290950

Nov 21 1350 $714150

Dec 21 80 $42,320

Date # lift passes used

Dec 21 4000

Jan 22 2900

Feb 22 1900

Mar 22 2000

Questions to be answered:

1) How much cash sales did the resort collect from six-pack sale?

2) What amount of revenue should the resort report for the year ended Dec 31, 2021?

3) Are there differences between the amount of cash collected and revenue recognition? If so, explain why.