A dentist offers an in-office teeth brightening service for a cash fee of $500. As part of this offer, the dentist will provide patients with a home teeth brightening kit that uses a special professional-grade bleaching solution. Patients receive a tube of this bleaching solution at no additional charge "for life." To receive this tube, patients must come to the dentist's office for their annual teeth cleaning and checkup appointment.
a. How should this dentist recognize revenue on this transaction?
b. Do you see any opportunities for the dentist to commit accounting fraud?