number 6

E3-4 (Algo) Identifying Accrual Basis Revenues (LO 3-1, LO 3-2) According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer . For many businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September Required: For each of the transactions, if revenue is to be recognized in September, indicate the amount Amount Activity a. A customer paid for and downloaded song files from Apple's iTunes store for $13 cash. Answer from Apple's standpoint b. Best Flooring provided a carpet installation for $2,600 cash. A comparable installation from other companios costs $3,600 c. Span Cable is scheduled to install digital cable at 1,300 Austin area homes next week. The installation charge is $135 per home. The terms require payment within 30 days of installation, Answer from Span Cable's standpoint d. Span Cable completed the installations described in (e). Answer from Span Cable's standpoint eSpan Cable received payment from customers for the installations described in (c). Answer from Span Cable's standpoint A customer purchased a ticket from QuickAir in September for $435 cash to travel in December. Answer from QuickAir's standpoint