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The following are independent situations that require profssional judgement to determine when to recognize revenue from the transactions. For each scenario, identify what is being
The following are independent situations that require profssional judgement to determine when to recognize revenue from the transactions. For each scenario, identify what is being "sold"; goods, services, or a combination. 1. Costco sells you a one-year membership with a single, onetime upfront payment. This non-refundable fee is paid at the A is being sold. time of signing the contract, and entitles you to shop at Costco for one year. 2. DOT Home and Patio sells you patlo furniture on a "no money A down, no interest, and no payments for one year" promotional is being sold. deal. The furniture is delivered to your home the same day. 3. The Toronto Blue Jays sell season tickets online to games in the A Rogers Centre. Fans can purchase the tickets at any time, is being sold. although the season does not officially begin uhtil April1. The season runs from April 1 through September each year. Payment is due in full at the time of purcliase. 4. CIBC lends you money in August. The loan and interest are repayable in full in two years. 5. Students pre-register for fall classes at Seneca College in August. The fall term runs from September to December. 6. Roots sells you a sweater. In August, you place and charge it to your RBC credit card. The swea and arrives in September. In October, you recei credit card statement and pay the amount due. 7. In March, Hometown Appliances sells a washing machine with an extended warranty plan for five year's. The washing machine is being sold. will not be delivered to the customer untifune: Payment is due on delivery. The extended warranty plans are normally sold separately. 8. Premier Health Clubs sells you a membership with an initlation B. A fee (which covers a medical assessment) and an ongoing is being sold, monthly fee. The initiation fee is payable at the time of the medical assessment and approximates the cost of the medical assessment. On July 10, 2023, Pharoah Ltd. sold GPS systems to retailers on account for a selling price of $920,000 (cost $736,000). Pharoah grants the right to return systems that do not sell in three months following delivery. Past experience indicates that the normal return rate is 15%. By October 11,2023 , following the collection on account, retailers returned systems to Pharoah and were granted credits of $81,000. The company follows IFRS. (b) Prepare Pharoah's journal entries to record the $81,000 of actual returns on October 10, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
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