=+Mario: Omar, arent you taking an introductory accounting course at college?

Omar: Yes, I decided it’s about time I learned something about accounting. You know, our an¬

nual bonuses are based upon the sales figures that come from the accounting department.

Mario: I guess I never really thought about it.

Omar: You should think about it! Last year, I placed a $500,000 order on December 27. But when I got my bonus, the $500,000 sale wasn’t included. They said it hadn’t been shipped until January 4, so it would have to count in next year’s bonus.

Mario: A real bummer!

Omar: Right! I was counting on that bonus including the $500,000 sale.

Mario: Did you complain?

Omar: Yes, but it didn’t do any good. Seth, the head accountant, said something about matching revenues and expenses. Also, something about not recording revenues until the sale is final.

I figure I’d take the accounting course and find out whether he’s just jerking me around.

Mario: I never really thought about it. When do you think Northwest Airlines will record its revenues from this flight?