Assessing Revenue Recognition of Companies Identify and explain when each of the following companies should recognize revenue. a. The GAP: The GAP is a retailer of clothing items for all ages. b. Merck & Company: Merck engages in developing, manufacturing, and marketing pharmaceutical products. It sells its drugs to retailers like CVS and Walgreen. c. Deere & Company: Deere manufactures heavy equipment. It sells equipment to a network of independent distributors, who in turn sell the equipment to customers. Deere provides financing and insurance services both to distributors and customers. d. Bank of America: Bank of America is a banking institution. It lends money to individuals and corporations and invests excess funds in marketable securities. e. Johnson Controls: Johnson Controls manufactures products for the government under long-term contracts. Assessing Risk Exposure to Revenue Recognition (L01) Banner AD Corporation manages a Website that sells products on consignment from sellers. It pays these sellers a portion of the sales price, and charges a commission. Identify two potential revenue recognition problems relating to such sales