E3.2 (LO A) AP For the following independent situations, use professional judgement to determine when the company should recognize revenue from the transactions: 1. WestJet Airlines sells you a nonrefundable airline ticket in September for your flight home at Christmas. 2. Leon's Furniture sells you a home theatre in January to be delivered in early February. 3. The Toronto Blue Jays sell season tickets to games in the Rogers Centre online. Fans can purchase the tickets at any time, although the season does not officially begin until March. It runs from March through 4. RBC Financial Group lends you money at the beginning of August. The loan and the interest are repayable in full at the end of November. 5. In August, you order a sweater from Amazon online. Amazon ships the sweater to you in September and you charge it to your Visa credit card. In October, you receive your Visa bill and pay it. 6. You pay for a one-year subscription to Canadian Business magazine in May. 7. You purchase a gift card from iTunes in December to give to your friend for Christmas. Your friend uses the gift card in January. Instructions Identify when revenue should be recognized using the five-step contract-based approach in each of the above situations. Prepare basic analysis, debit-credit analysis, and adjusting entries