Discuss the accrual-basis accounting

Assignment Help Accounting Basics

Reference no: EM131519849

Question: Consider the following situations:

1. American Airlines collects cash on June 12 from the sale of a ticket to a customer. The flight occurs on August 16.

2. A customer purchases sunglasses from Eddie Bauer on January 27 on account. Eddie Bauer receives payment from the customer on February 2.

3. On March 30, a customer preorders 10 supreme pizzas (without onions) from Pizza Hut for a birthday party. The pizzas are prepared and delivered on April 2. The company receives cash at the time of delivery.

4. A customer pays in advance for a three-month subscription to Sports Illustrated on July 1. Issues are scheduled for delivery each week from July 1 through September 30.

Required: For each situation, determine the date for which the company recognizes the revenue under accrual-basis accounting.

Reference no: EM131519849

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