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Prompt Gilroy Swim & Steam is a full - service pool and spa retailer just outside of Phoenix, Arizona. In addition to pool and spa
Prompt
Gilroy Swim & Steam is a fullservice 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 Gilbert repaired some hairline cracks in a customer's pool at a cost of $ On the same day, the customer also purchased a twelvemonth pool maintenance package for $ and ordered a new ladder for the pool at a cost of $ including free installation. The customer paid a total of $ with a check on May The pool ladder was shipped directly to the customer's house, arriving on May and on May a technician went to the customer's 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 Gilroy's 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.
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