The following independent situations require professional

judgement for determining when #1799

The following independent situations require professional judgement for determining when to
recognize revenue from the transactions.1. Air Yukon sells you an advance purchase airline
ticket in September for your flight home at Christmas.2. Better Buy Ltd. sells you a home theatre
on a "no money down, no interest, and no payments for one year'' promotional deal.3. The
Centurions baseball team sells season tickets to games on-line. Fans can purchase the tickets
at any time, although the season doesn't officially begin until April. It runs from April through
October.4. Designers End Ltd. sells you a sweater. In August, you placed the order using
Designers' on-line catalogue. The sweater arrives in September and you charge it to your
Designers End credit card. You receive and pay the credit card bill in October.Instructions(a)
Explain when revenue is historically recognized under the current revenue recognition
principle.(b) Identify when revenue should be recognized in each of the situations under the
current revenue recognition model.View Solution:
The following independent situations require professional judgement for determining when

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