Chargeit Inc. imports and distributes cellphone chargers and fully-charged portable backup power stations to gas stations and other small retailers. Chargeit has a standard contract that it enters into with each gas station or retailer, which stipulates the following:

1. The gas stations and retailers are required to place Chargeit’s product display unit on or adjacent to the cash counter.

2. Chargeit is responsible for servicing the display unit, in terms of restocking it, and its employees will visit each gas station or retailer at least twice each month to count the number of products in the display unit, determine the number of products sold, and restock the display units.

3. The gas stations or retailers are required to pay only for the products sold to customers, receive 20% of each sale, and remit the balance to Chargeit at the end of each month.

4. The gas stations and retailers are responsible for any products stolen from the Chargeit display station.

5. The contract is cancellable by either party with 30 days’ notice, and all unsold product and the display unit must be returned to Chargeit.

Required
Explain when Chargeit would recognize revenue under the contract-based approach. Also explain how the gas stations and retailers would recognize revenue under the contract-based approach.