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Gabe: Wonderful, we appreciate your business. Our team will start the order immediately: It is now October 25, 2023, Donovan received the T-shirts and bags

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Gabe: Wonderful, we appreciate your business. Our team will start the order immediately: It is now October 25, 2023, Donovan received the T-shirts and bags by Oct 1, 2023. but Gabe has not been paid for the goods. Gabe calls Donovan. "Listen, yes, I have the shirts and the bags, so why are you calling?" Donovan asked. "Why haven't you paid the invoice?" Gabe asked. "Because I thought since we were friends this was a gift from you. We never signed any agreement or order form stating that I would pay for these items." Donovan said. "No... there was no order form, but our email exchange was enough to place the order." Gabe replied. "Whatever, we had no contract and I never said I was paying for these items. Good luck with getting money out of me!" Donovan yelled and then hung up. Given the scenario above, answer the following questions. - State each of the FIVE steps to recognizing revenue. - For each of the FIVE steps to recognizing revenue, explain whether each one was met and whether Gabe can recognize revenue. - Is Donovan correct in his assertion that he did not agree to pay for the goods? Donovan and Gabe were having a conversation over dinner one day. Gabe is the owner of a custom apparel business. After they finished their meals, they continued the chat over drinks at the bar. Donovan mentioned he was in charge of planning a team building event for the nonprofit organization he belonged to. "I gotta order Tshirts and tote bags for the team," Donovan said. Gabe said, "OK, just let me know what you need, and we can go from there." The next day, Donovan emailed Gabe the following: I need 20L black T-shirts with our logo and 20 red tote bags with our logo. I need to have them by October 1. 2023. Gabe replied: OK sounds good. We can accommodate your order and the timeline. The cost of the T-shirts is $200 ( $10 per shirt) and the cost of the tote bags will be $300 ( $15 per bag). We can have them ready for you by the Oct 1,2023 deadline. Donovan replied: Perfect! Here is the logo and the address to deliver the shirts and pags. Here is the point of contact to receive the order or if there are any questions. Wabe: Wonderful, we appreciate your business. Our team will start the order order." Gabe replied. "Whatever, we had no contract and I never said I was paying for these items, Good luck with getting money out of me!" Donovan yelled and then hung up. Given the scenario above, answer the following questions. - State each of the FIVE steps to recognizing revenue. - For each of the FIVE steps to recognizing revenue, explain whether each one was met-and whether Gabe can recognize revenue. - Is Donovan correct in his assertion that he did not agree to pay for the goods? Why or why not? - What do you think Gabe can do about the outstanding invoice? Explain. - What are your final thoughts on the scenario above

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