Prompt

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 customer's 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 customer's house, arriving on May $10,$ and on May $14,$ 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.