Global spending on mobile games is expected to surpass $100 billion in 2020 (compare that to the $64 billion spent on toilet paper in 2019). Many of these games are offered free, with options to purchase virtual goods or other premium content (i.e., freemium games). However, it is not always clear when mobile gaming companies should recognize revenue for purchases of virtual goods. Absterge Industries is a mobile game company that offers its Wizard Warriors game free to customers but charges for magic spells that can be used in the game. A set of three magic spells costs $6. Customers can use each of the three spells once at any time they choose. Suppose Abstergo charges $10 for a magic wand that can be used indefinitely. When should Abstergo recognize revenue for the sale of a magic wand? a. When the customer pays for the wand? b. Gradually over a specified period of time? When the wand is first used? c. If you choose (b), what time period would you use? If you choose (c), when, if ever, would you recognize revenue if the customer doesn't ever use the spells? Global spending on mobile games is expected to surpass $100 billion in 2020 (compare that to the $64 billion spent on toilet paper in 2019). Many of these games are offered free, with options to purchase virtual goods or other premium content (i.e., freemium games). However, it is not always clear when mobile gaming companies should recognize revenue for purchases of virtual goods. Absterge Industries is a mobile game company that offers its Wizard Warriors game free to customers but charges for magic spells that can be used in the game. A set of three magic spells costs $6. Customers can use each of the three spells once at any time they choose. Suppose Abstergo charges $10 for a magic wand that can be used indefinitely. When should Abstergo recognize revenue for the sale of a magic wand? a. When the customer pays for the wand? b. Gradually over a specified period of time? When the wand is first used? c. If you choose (b), what time period would you use? If you choose (c), when, if ever, would you recognize revenue if the customer doesn't ever use the spells