In the following transactions, indicate when revenue should be recognized:
1. In September, Mount Allison University collects tuition revenue for the term from students. The term runs from September through December.
2. Grinstone Island Company sells merchandise with terms of 2/10, n/30, FOB destination.
3. The Ottawa Senators sell season tickets to games in ScotiaBank Place. Fans can purchase the tickets at any time, although the season doesn't officially begin until September. It runs from September through May.
4. Porter Airline sells you a refundable airline ticket in September for your flight home at Christmas.
5. The University Bookstore has the following return policy for textbook sales: "Textbooks (new and used) may be returned for seven calendar days from the start of classes. After that time, textbooks (new and used) may be returned within 48 hours of purchase."
Instructions
Identify when revenue should be recognized in each of the above situations.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q99: Which revenue recognition method would most likely
Q100: At the time of acquisition, long-lived assets
Q101: Instructions
For each item below, indicate the area
Q102: The following are independent situations observed by
Q103: For each of the independent situations described
Q105: A number of unrelated transactions recorded by
Q106: The following are independent situations observed by
Q107: A number of unrelated transactions recorded by
Q108: There are several ways the recognition and
Q109: Shediac Bay Sailing Inc. sold $175,500 of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents