• Diagram the process of revenue recognition.
• Start with the process.
• What starts the process?
• Think through from the business perspective what happens when you purchase a good or service?
• What are the journal entries?
• What are the accounts?
• What happens to the accounts?
• What's the impact on the financial statements?
• Which financial statements?

The guidance above should get you started.This is an exercise in bothanalysisandconstruction.Take apart the knowledge you have of a basic sales transaction and then put it back together into a meaningful diagram which will guide the text of your paper.