Case 1: Retainer Fees as Sales (Chapter 9) Bunch o' Balloons markets balloon arrangements to companies that want to thank clients and employees. Bunch o' Balloons has a unique style that has put it in high demand. Consequently, Bunch o' Balloons has asked clients to establish an account. Clients are asked to pay a retainer fee equal to about three months of purchases. The fee will be used to cover the cost of arrangements delivered and will be reevaluated at the end of each month. At the end of the current month, Bunch o' Balloons has $43,900 of retainer fees in its possession. The controller is eager to show this amount as sales because it represents certain sales for the company.

Use the Ethical Decision Framework in Exhibit 1-9 to complete the following requirements:

10.1 Long-Term Liabilities

Exhibit 10.2Bond Certificate

10.3Recording Amortization of Discount

Exhibit 10.4Discount Amortization: Effective Interest Method of Amortization

Exhibit 10.5Premium Amortization: Effective Interest Method of Amortization

Exhibit 10.6 Note Disclosure of Leases

Exhibit 10.7Lease Amortization: Effective Interest Method of Amortization

Exhibit 10.8Long-Term Liabilities on the Statement of Cash Flows

Exhibit 10.9The Company and Subsidiaries Consolidated Statements of Cash Flows

Select the best alternative: Among the alternatives, which one would you select?