Case 3-1 Accrued revenue The following is an excerpt from a conversation between Monte Trask and Jamie Palk just before they boarded a flight to Berlin on American Airlines. They are going to Berlin to an tend their company's annual sales conference. Morte: Jamie, aren't you taking an introductory accounting course at college Jamie Yes, I decided it's about time I learned something about accounting. You know, our annual bonuses are based on the sales figures that come from the accounting department Monte: I guess I never really thought about it Jamie You should think about le Last year, I placed a $900,000 order on December 27. But when I got my bonus, the $900,000 sale wasn't included. They said it didn't ship until January 5, so it would have to count in next year's bons Monte A real bummert Jane Right I was counting on that bonus including the $900,000 sale Monte Did you complain! Yes, but it didn't do any good. Sophia, the head accountant, said something about march ing revenues and expenses. Also, something to recording revenues until the sales final I figured take the accounting course and find out whether she's just jerking me around Mont e ver really thought about it. When do you think American Airlines will record its venues from the w i mm, I guess it could record the revenue when it sells the ticket ..or when the boarding passes are taken at the do o r when we get off the plane. when com pany pays for the tickets or I don't know my counting instructo Discuss when American Airlines should recognize the revenue from ticket sales to properly match revenues and expenses Case 3-1 Accrued revenue The following is an excerpt from a conversation between Monte Trask and Jamie Palk just before they boarded a flight to Berlin on American Airlines. They are going to Berlin to an tend their company's annual sales conference. Morte: Jamie, aren't you taking an introductory accounting course at college Jamie Yes, I decided it's about time I learned something about accounting. You know, our annual bonuses are based on the sales figures that come from the accounting department Monte: I guess I never really thought about it Jamie You should think about le Last year, I placed a $900,000 order on December 27. But when I got my bonus, the $900,000 sale wasn't included. They said it didn't ship until January 5, so it would have to count in next year's bons Monte A real bummert Jane Right I was counting on that bonus including the $900,000 sale Monte Did you complain! Yes, but it didn't do any good. Sophia, the head accountant, said something about march ing revenues and expenses. Also, something to recording revenues until the sales final I figured take the accounting course and find out whether she's just jerking me around Mont e ver really thought about it. When do you think American Airlines will record its venues from the w i mm, I guess it could record the revenue when it sells the ticket ..or when the boarding passes are taken at the do o r when we get off the plane. when com pany pays for the tickets or I don't know my counting instructo Discuss when American Airlines should recognize the revenue from ticket sales to properly match revenues and expenses