In the Following Transactions, Indicate When Revenue Should Be Recognized

question 15

Essay

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.