For the following independent situations, use professional judgement to determine when the company should recognize re
For the following independent situations, use professional judgement to determine when the company should recognize revenue from the transactions:
(a) WestJet Airlines sells you a nonrefundable airline ticket in September for your fl ight home at Christmas.
(b) Leon's Furniture sells you a home theatre in January on a "no money down, no interest, and no payments for one year" promotional deal.
(c) The Toronto Blue Jays sell season tickets to games in the Rogers Centre on-line. Fans can purchase the tickets at any time, although the season does not officially begin until April. It runs from April through October.
(d) The RBC Financial Group loans you money at the beginning of August. The loan and the interest are repayable in full at the end of November.
(e) In August, you order a sweater from Sears using its on-line catalogue. Sears ships the sweater to you in September and you charge it to your Sears credit card. In October, you receive your Sears bill and pay it.
(f) You pay for a one-year subscription to Canadian Business magazine in May.
(g) You purchase a gift card in December from iTunes to give to your friend for Christmas. Your friend uses the gift card in January.
Identify when revenue should be recognized in each of the above situations.