Question
FLY Inc. sells a customer a non-refundable airline ticket on Feb 8, 2020 to fly to Toronto on June 5 and returning July 30, 2020.
FLY Inc. sells a customer a non-refundable airline ticket on Feb 8, 2020 to fly to Toronto on June 5 and returning July 30, 2020. The $500 fare has been charged to the customers credit card on Feb 8. FLY reports quarterly and has a December 31 year end.
Required: List each step in the IFRS 15 five step revenue recognition process and explain how it will be specifically applied by FLY for this transaction. Conclude by stating the amount of revenue by quarter that FLY would recognize.
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
978-0078110894
