File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do The following are independent situations that require professional judgement for determining when to recognize revenue from the transactions. 1. Costco sells you a one-year membership with a single, one-time upfront payment. This non-refundable fee is paid at the time of signing the contract, and entitles you to shop at Costco for one year. 2. DOT Home and Patio sells you patio furniture on a "no money down, no interest, and no payments for one year" promotional deal. The furniture is delivered to your home the same day. . CIBC lends you money in August. The loan and interest are repayable in full in two years . 4. Students pre-register for fall classes at Seneca College in August. The fall term runs from September to December. 5. Sears sells you a sweater. In August, you place the order using Sears' on-line catalogue. The sweater is shipped and arrives in September and you charge it to your Sears credit card. In October, you receive the Sears credit card statement and pay the amount due. 6. In March, Hometown Appliances sells a washing machine with an extended warranty plan for five years. The washing machine will not be delivered to the customer until June. Payment is due upon delivery. The extended warranty plans are normally sold separately. 7. Premier Health Clubs sells you a membership with an initiation fee (which covers a medical assessment) and an ongoing monthly fee. The initiation fee is payable at the time of the medical assessment and approximates the cost of the medical assessment. Instructions a) Explain the principles and criteria for revenue recognition under the earnings approach.(5 marks) b) For each of the above scenarios, discuss when revenue should be recognized under the earnings approach. Provide the journal entries that would be recorded to recognize the revenue under the earnings approach.(22 marks) c) Peer evaluation (3 marks) CENTENNIAL COLLEGE e 2 of 4 899 words P English (Canada)