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The following independent situations require professional judgment for determinine when to recognize revenue from the transtactions. Determine when revenue should be recognized in each of
The following independent situations require professional judgment for determinine when to recognize revenue from the
transtactions.
Determine when revenue should be recognized in each of the below situations.
a Southwest Airlines sells you an advancepurchase airline tickat in September for
your flight home in December.
b Ultimate Electronics sells you a home theater on a no money down and full
payment in three months" promotional deal.
c The Toronto Blue Jays sell saason tid ac online to games in the Sloydome. Fans can
purchase the tickats at any time, a though the season doesn't official y begin until
April. The major league basaball season runs from April through Oetober.
d REC Finarcial Grouploans money onAugust The loan and the interest are
repayable in full in Novamber.
a In August, a customer orders a sweater from the Sears wabsite using a Saars credit
card. The sweater arrives in September. Sears sends a bill in October and recaives
paymant in October.
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