Gilroy Swim & Steam is a full-service pool and spa retailer just outside of Phoenix, Arizona. In addition to pool and spa sales, the company also offers repair services and maintenance packages. On May 1, Gilbert repaired some hairline cracks in a customers pool at a cost of $900. On the same day, the customer also purchased a twelve-month pool maintenance package for $1,500 and ordered a new ladder for the pool at a cost of $450, including free installation. The customer paid a total of $2,850 with a check on May 1. The pool ladder was shipped directly to the customers house, arriving on May 10, and on May 14, a technician went to the customers home and completed the installation of the pool ladder.

In one to two fully developed paragraphs, use the scenario to respond to the following:

Identify three different performance obligations from Gilroys transactions with the customer.

Determine if the revenue for each performance obligation will be recognized at a single point in time or over a period of time.

Briefly explain the circumstances for determining when revenue should be recognized at a single point in time and when revenue should be recognized over a period of time.