Question
The following are independent situations that require professional judgement for determining when to recognize revenue from the transactions . Costcosellsyouaone-year membership withasingle,one-time upfrontpayment.Thisnon-refundable fee is
The following are independent situations that require professional judgement for determining when to recognize revenue from the transactions.
Costcosellsyouaone-yearmembershipwithasingle,one-timeupfrontpayment.Thisnon-refundable fee is paid at the time of signing the contract, and entitles you to shop at Costco for one year.
DOT Home and Patio sells you patio furniture on a "no money down, no interest, and no payments for one year" promotional deal. The furniture is delivered to your home the same day.
The Toronto Blue Jays sell season tickets online to games in the Rogers Centre. Fans can purchase the tickets at any time, although the season does not officially begin until April 1. The season runs from April 1 through September each year. Payment is due in full at the time of purchase.
CIBC lends you money in August. The loan and interest are repayable in full in two years.
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Students pre-register for fall classes at Seneca College in August. The fall term runs from September
to December.
Hudson'sBayCompany(HBC)sellsyouasweater.InAugust,youplaceanonlineorder.Thesweater is shipped and arrives in September and you charge it to your HBC credit card. In October, you receive the HBC credit card statement and pay the amount due.
In March, Hometown Appliances sells a washing machine with an extended warranty plan for five years. The washing machine will not be delivered to the customer until June. Payment is due upon delivery. The extended warranty plans are normally sold separately.
PremierHealthClubssellsyouamembershipwithaninitiationfee(whichcoversamedicalassess- ment) and an ongoing monthly fee. The initiation fee is payable at the time of the medical assess- ment and approximates the cost of the medical assessment.
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